tag:blogger.com,1999:blog-4900303239154048192.post2498133560857416951..comments2024-03-06T06:34:42.881-05:00Comments on EconoSpeak: The Fed Is Financing the ECB's Support For European BanksUnknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-4900303239154048192.post-36744923854597842132012-01-10T20:22:07.222-05:002012-01-10T20:22:07.222-05:00John,
He said a lot, but the main theme was the ...John,<br /> <br />He said a lot, but the main theme was the rising importance of gross capital flows. He argued that these were important even when net ones did not change. The issue is that they can be undone suddenly, which can swamp everything else, including the current account. <br /><br />He reviewed a lot of views, including various disagreements over whether the current account matters or not. He mostly came down of those who say it does not, but then said that it does matter. However, it seemed that the main reason was the one I put in the post, that deficit countries are much more susceptible to foreign exchange crises than current account surplus ones.<br /><br />He did also note the asymmetry of how the burden of adjustment to bop imbalances is on the deficit countries, but in effect said that this is the way it has always been and probably will be, even if he seemed to agree that this was not necessarily such a good thing.Barkley Rosserhttps://www.blogger.com/profile/13114257724762074636noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-37855685051147199802012-01-10T16:51:31.689-05:002012-01-10T16:51:31.689-05:00More on the Obstfeld talk please.More on the Obstfeld talk please.john c. halaszhttps://www.blogger.com/profile/17176419625607679150noreply@blogger.com