Is the Bank of Japan’s quantitative easing to weaken the yen a ‘beggar-thy-neighbor’  approach?  Central banks in China, South Korea, Taiwan, Singapore and Thailand are easing their policies.  The European Central Bank and the banks of Norway, Switzerland and Sweden may soon follow suit.

The dollar continues to grow strong, but if it grows too strong against other currencies the US Fed may well decide to hold off on raising interest rates.  This appears to arise from the fact that monetary policy is the only instrument left to effect economies.  This may be the time for slower fiscal consolidation and infrastructure spending.

Austerity programs have not worked.  Less austerity in the short run, infrastructure investment and less reliance on monetary easing make sense. Can these ideas fly internationally?