Archive for July 11th, 2012

Criticizing Fed: Some links

July 11, 2012

Few  interesting links criticizing Fed policy.

Gagnon advocates following interesting measures:

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Reducing the U.S. Current Account Deficit by Recycling Capital Inflows from China

July 11, 2012

Pengfei Wang, Yi Wen and Zhiwei Xu suggest a way to bridge US Current Account Deficit. The long paper is here and a shorter version is here.

The authors say US should simply recycle the capital inflows from China back to China as FDI. Returns on fixed capital in China are  much higher.

First, why China exports its savings to US? It is because it does not have proper capital markets:

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After Columbus: Explaining the Global Trade Boom 1500-1800

July 11, 2012

A superb paperon history of global trade by Kevin H. O’Rourke and Jeffrey Williamson.

It looks at reasons why trade expanded post Columbus. Was it rise in technology or declining trade barriers or better transportation or demand/supply?

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