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April 2010

What Do Chinese Exchange Rates and German Wages Have in Common?

Jamus Lim's picture

They have both been blamed for being the primary mechanism that prevents the adjustment of their trade imbalances, of course.

What this (admittedly crude) caricature papers over, however, is the ultimate necessity for any proximate adjustment mechanism to operate on one of the levers that constitutes the real exchange rate. Recall, this real exchange rate (q) is defined as

q = ep*/p,

American Perso-national Financial Statements

Israel Osorio Rodarte's picture

Think about your family. Think about your work, your earnings, debts, credit cards, your children's education, your retirement and the unforgettable taxes. Now, imagine just for just a few moments that you have just received a sealed envelope from your Congressman working at Capitol Hill. Inside this envelope there is a letter: "CONGRATULATIONS! This is your New Citizen Account Bill (PDF) with the Federal Government of the United States." Immediately the letter will tell you very good news.

Why Global Coordination is Falling Short and Why We Should Be Worried

Merrell Tuck-Primdahl's picture

Lackluster global coordination, relatively weak international responses to the worldwide financial crisis, persistent problems of over-capacity, and the likely decimation of peasant agriculture in countries with huge populations to feed are all factors largely overlooked by most economists and policymakers. Giving these issues short shrift could ultimately lead us into a double dip recession, warned a diverse panel of experts who spoke on March 25 at Columbia University.