Here's an article by Martin Wolf, laying out similar arguments to those made by Michael Pettis, about how the world cannot export its way out of this mess. Wold focuses on currencies and how countries receiving large net inflows of investment capital (such as China and Brazil) should be running trade deficits (as the U.S. did during its rapid growth phase in the 19th Century).
This will be one area that politicians gravitate towards if social mood slips and the public demands protectionist laws, since it can be partially implemented by "stealth" through the central banks. The politicians will hesitate to pass outright protectionist laws because they are an overt diplomatic faux pas and will be harder to reverse. Adjusting monetary policy is less effective, less public, and more easily reversed.
Currencies clash in new age of beggar-my-neighbour
王毅出访印柬巴三国 寻求突破美国“区域围堵”
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中国外长王毅计划于4月18日至23日,对印尼、柬埔寨及巴布亚新几内亚进行正式访问。中国外交部发言人林剑在宣布王 […]...
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