1/4
I rarely read pieces that too-eagerly disparage "pundits", and this doesn't disappoint. The author argues that because exports often don't vary inversely with currencies, this proves that the exchange rate doesn't matter much to the balance of trade.
caixinglobal.com/2021-03-16/fis…
I rarely read pieces that too-eagerly disparage "pundits", and this doesn't disappoint. The author argues that because exports often don't vary inversely with currencies, this proves that the exchange rate doesn't matter much to the balance of trade.
caixinglobal.com/2021-03-16/fis…
2/4
Nonsense. The exchange rate matters a great deal, but it is not the only thing that matters. So do interest rates, the distribution of income, implicit or explicit manufacturing subsidies, and a whole range of other supply-side policies. When a stronger currency is...
Nonsense. The exchange rate matters a great deal, but it is not the only thing that matters. So do interest rates, the distribution of income, implicit or explicit manufacturing subsidies, and a whole range of other supply-side policies. When a stronger currency is...
3/4
accompanied for example by greater manufacturing subsidies or repressed interest rates, the resulting expansionary impact of the latter on the trade balance can easily overcome the contractionary impact of the exchange rate. That is why I have been arguing for nearly...
accompanied for example by greater manufacturing subsidies or repressed interest rates, the resulting expansionary impact of the latter on the trade balance can easily overcome the contractionary impact of the exchange rate. That is why I have been arguing for nearly...
4/4
a year that because China was responding to Covid-19 with supply-side policies while much of the rest of the world focused in demand-side boosts, we would see both a strengthening RMB and a growing Chinese trade surplus.
a year that because China was responding to Covid-19 with supply-side policies while much of the rest of the world focused in demand-side boosts, we would see both a strengthening RMB and a growing Chinese trade surplus.
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