Currency Depreciation Is No Panacea For China, Japan, Eurozone: Natixis

Despite China, Japan, and Eurozone resorting to currency depreciation to stimulate their economies, such a move is ill-suited to the problems these countries are facing, notes Natixis. Patrick Artus of Natixis in his December 29, 2015 research note points out that the U.S. and UK have shown no desire to weaken their exchange rates, as they have exited quantitative easing. Currency depreciation weakens Euro zone’s domestic demand Artus points out that the currencies of large emerging countries such as Brazil, India, Russia, South Africa, Turkey have been depreciating since 2013, something which the countries are enduring more than they have…