An early topic this term will be foreign exchange rates. After all, we need/want to be able to compare China to other countries, and to understand trade and international finance issues. So here’s a bit of perspective. We also need to develop the concept of “PPP” (purchasing power parity). For more on this topic, see… Continue reading Exchange rates: Updated
From Paul Krugman’s blog: Here … is Erskine Bowles warning, in March 2011, that terrible things will happen if China stops buying our bonds: [T]his is a problem we’re going to have to face up to. It may be two years, you know, maybe a little less, maybe a little more. But if our bankers… Continue reading What if the Chinese Stop buying US$??