WHO IS WINNING THE TARIFF WAR, CHINA OR THE USA?
April 23, 2025 4 Comments
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productivity of all countries measured in lumpsum way in dollars which goes into exchange rate calculation. This is kind of circular
It’s absolute levels being referred to. If we were discussing annual or quarterly changes you would be right
I think: USA produces 100 billion dollars of goods with 100 million work force while india produces 50 billion dollars( rupees converted into dollars based on earlier exchange rate i.e., Day before gold standard was removed in 1971) goods with 500 million workers.
From there it feeds back every day into all trade transactions!!
is this correct?
Because as per google, exchange rate is dependent on productivity, capital flows etc.,
Kartheek with regard to the USA where until recently 68% of all global share values were found in the USA it has been capital flows. For example buying US shares and bonds. This surplus going into the USA exceeded by a factor of three, the trade deficit.