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He has an excellent blog - he’s also active on Twitter. I believe he’s @michaelxpettis
by joshuafkon 7y ago
He has an excellent blog - he’s also active on Twitter. I believe he’s @michaelxpettis
- dragonsh 7y agoExcellent article, have one question, besides economics, the main reason a country can produce cheaply is dependent on highly productive labour, non union structure and friendly labor laws for industries. This is one of the reason besides Japan, Korea, Germany and China other countries did not fair that well. How do economist put value to this intangible forms? Every country manipulate currency to some extent including USA. So why not revamp the system completely.
- mooreds 7y agoCheck out the "Impossible Trinity": https://en.wikipedia.org/wiki/Impossible_trinity https://en.wikipedia.org/wiki/Impossible_trinity A country can have two of the following three w/r/t its currency (but not all three) a fixed foreign exchange rate free capital movement (absence of capital controls) # the USA likes this, or rather investors in the USA do an independent monetary policy # most everyone wants this China chose fixed rate and independent monetary policy, the USA chose free capital movement and independent monetary policy.
- dragonsh 7y agoThat's a very useful information didn't know about it. It's like CAP theorem in distributed systems can't have all 3.
- mooreds 7y agoWorth noting that this is a theory, but there's definitely empirical evidence for it.
- mamon 7y agoAnd Eurozone countries chose the first two, giving up independent monetary policy :)
- mooreds 7y agoRight. And countries like Greece saw the ... complications of that choice.