Alex Cunningham

Nicolas Sarkozy on Thursday stepped up his attack on global exchange rate imbalances saying “monetary disorder” had become “unacceptable”. The French president said he would make exchange rate policy an important theme of France’s presidency of the G8 and G20 forums of advanced and developing economies in 2011. “There cannot be financial, economic and social order until we put an end to currency disorder,” he said at a conference in Paris. Mr Sarkozy has long railed against Chinese “monetary dumping” and the dominance of the dollar, but has sharpened his criticism in recent days reflecting concern in Paris that a balanced economic recovery in the eurozone could be choked off by an overvalued currency. With a large trade deficit and with exports that are more price-sensitive than Germany’s, France feels more susceptible to exchange-rate movements than its neighbour across the Rhine. “We can’t increase the competitiveness of our businesses in Europe and have the dollar lose 50 per cent of its value against the euro,” Mr Sarkozy said. “When we produce in the eurozone and sell in the dollar zone, are we supposed to just give up selling?

Todavía no empezamos a pensar con seriedad en la sustentabilidad de nuestra sociedad impulsada a crédito y consumo”, afirma el sociólogo polaco. Para el autor de Modernidad líquida gobiernos e instituciones han aprendido muy poco de la crisis económica reciente: la respuesta a la quiebra fue endeudarse aun más.

Volcker bases his argument on the belief that “we need to produce more, finance less”.