Jean Claude Trichet spells out G7 policy on falling dollar - by Gerard Baker
Say what you will about Jean Claude Trichet, the Monsieur Non of global monetary policy, the rock standing resolutely in the path of lower European interest rates in the face of financial and economic turmoil, but you have to love someone who does it with such lyrical panache.Governments are unlikely to want to throw good euros or yen in the current circumstances after a dollar that continues to be weakened by uncertainty about the state of the US economy.Yesterday, the US Government reported that retail sales rose in the first three months of the year at an annualized rate of only 0.7 per cent. These figures are not adjusted for inflation, which is running at about 3 to 4 per cent, so it is safe to assume that consumption in the first quarter was declining sharply in real terms.
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