Press Release Headlines

Inflation, Balance of Payments and Currency Exchange Rates, Interest Rates, Share Prices and Pensions: a Report from Manfred Davidmann

LONDON, Aug., 9, 2006 — In this report Manfred Davidmann reviews a country's ways out of a payments crisis and details the consequences of increasing interest rates, greater borrowing, selling assets or printing more money.

To give just a few examples, he:

-- Shows how rising interest rates follow from 
   balance-of-payments deficits. 
-- Shows how interest rates determine share prices and thus 
   the extent to which pension funds are in surplus or 
   underfunded.
-- Shows how inflation affects currency exchange rates, 
   trade and competing abroad.
-- Describes the struggle to share out inflation's burdens.

Clear and meaningful language is backed by easily understood illustrations. And easy-to-follow diagrams illustrate the relationships.

How local and national governments are managing our affairs is of crucial importance to every citizen.

It was Manfred Davidmann who twenty years ago demolished the then-current economic myths about "Price Inflation" and "Wage Inflation," and about inflation and unemployment. Ten years ago he coined the phrase "Exporting Employment and Importing Unemployment," and pointed to, and warned about, the social and economic consequences of what is now often euphemistically called "outsourcing" or "globalization."

And in "Inflation, Balance of Payments and Currency Exchange Rates," Manfred Davidmann explores how national and international accounts and accounting reflect the quality of management in national and local government and reflect multinational operations such as devaluation pricing, profits maximization, transfer pricing, importing from low-wage countries, and transferring work to low-wage countries. And he reviews different ways of balancing income and expenditure, causes of inflation, and tax avoidance.

Government has to make ends meet, and has to bring about a rising standard of secure living, social security and an increasing quality of life for its citizens. There can be ups and downs, but, says Manfred Davidmann, "failure to make ends meet is just as directly and surely the result of bad leadership and management as it is in any commercial enterprise." This is a severe criticism also of the kind of experts and consultants used, and of the way they are used. "The quality of one's experts and whether and how their expertise is used, and applied, are of decisive importance."

Manfred Davidmann is an internationally well-known and respected scientist and author of a number of books and reports which have had considerable impact. His work usually breaks new ground and opens up new understanding and is written in meaningful and easily understood language. Outstanding is that his work is generally accepted as factual, objective and unbiased. More than two million, six hundred thousand of his reports have been downloaded from the Solbaram website so far.

See the report:
Inflation, Balance of Payments and Currency Exchange Rates (Including: Quality of National and Local Government and Worldwide Inequality) -
http://www.solbaram.org/articles/inflation.html

Website: http://www.solbaram.org/

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Angelika Schaumberg
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