4 ms·
> For somebody to leave the Eurozone for the Dollar zone there has to be somebody coming in the opposite direction to exchange with. Does that mean trade imbal
by michaelt 9mo ago
> For somebody to leave the Eurozone for the Dollar zone there has to be somebody coming in the opposite direction to exchange with.
Does that mean trade imbalances don’t exist?
- neilwilson 9mo agoCorrect. They don’t. It’s an illusion caused by where the accounting boundary is drawn. That’s why “imbalances” never close. If goods and services were exchanged for little models of the Eiffel Tower nobody would say there was an imbalance. Yet we do when we exchange for Euros.