tag:blogger.com,1999:blog-4900303239154048192.post1534316660161649858..comments2024-03-06T06:34:42.881-05:00Comments on EconoSpeak: Exchange Rates, Monetary Policy, and Fiscal PolicyUnknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-4900303239154048192.post-8975541401470881642007-10-03T15:41:00.000-04:002007-10-03T15:41:00.000-04:00However, Robert, what you have done is flip the ca...However, Robert, what you have done is flip the causation around ... rather than a savings drought causing a current account deficit, your description implies a current account deficit causing a savings drought.<BR/><BR/>Which is, after all, the more plausible direction of causation, since we can choose to import independent of how much we export, and can choose to create vertical money through government spending independent of how much vertical money we destroy through taxation ... but there is no decision to save independent of a decision not to consume.BruceMcFhttps://www.blogger.com/profile/08502035881761277885noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-46684858388666542782007-10-02T23:55:00.000-04:002007-10-02T23:55:00.000-04:00Not sure where Baker's confusion comes in. If US ...Not sure where Baker's confusion comes in. If US consumption and government spending is greater than production, which seems to be the case, then you'll have dollars chasing imported goods to make up the difference. Flooding dollars into the exchange market will cause the dollar to decline.Unknownhttps://www.blogger.com/profile/04478090427005241423noreply@blogger.com