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The U.S.–China Trade Imbalance And The Theory Of Free Trade: Debunking The Currency Manipulation Argument, Anwar Shaikh, Isabella Weber
The U.S.–China Trade Imbalance And The Theory Of Free Trade: Debunking The Currency Manipulation Argument, Anwar Shaikh, Isabella Weber
PERI Working Papers
The U.S.-China trade imbalance is commonly attributed to a Chinese policy of currency manipulation. However, empirical studies failed to reach consensus on the RMB misalignment. We argue that this is not a consequence of poor measurement but of theory. At the most abstract level the conventional principle of comparative cost advantage suggests real exchange rates will adjust so as to balance trade. Therefore, the persistence of trade imbalances tends to be interpreted as arising from currency manipulation facilitated by foreign exchange interventions. By way of contrast, the absolute cost theory explains trade imbalances as the outcome of free trade among …
Is Imperialism Passé In The 21st Century?, Rohit Azad, Shouvik Chakraborty
Is Imperialism Passé In The 21st Century?, Rohit Azad, Shouvik Chakraborty
PERI Working Papers
Hardt and Negri in Empire argue that ”Imperialism is over.” On the contrary, others argue that not only is imperialism not dead, but its machinations have amplified during the phase of globalisation (Patnaik’s The Value of Money, Patnaik and Patnaik’s A Theory of Imperialism, John Smith’s Imperialism in the Twenty-First Century, among others). The reason for this sharp division among progressives is because of the current world scenario. On the one hand, some countries in the periphery (emerging economies) are growing faster than those in the core. On the other hand, the terms of trade has started moving in favour …