Re: The Hong Kong peg?

[michael@xxxxxxxxxxxxxxxxx]

Doug asked:
>
> What's happening with relative productivity growth in the SE Asian
> countries? Shaikh says that fundamental currency values are determined by
> relative productivity changes, and he's got a convincing set of charts to
> prove it.
>
How do know know what fundamental currency values are?  They are like
"real interest rates".  We speak confidently about them even though nobody
can see them.

Think of the huge currency swings of the dollar in the 1980s.  Did the
fundamentals change that much?

--
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael@xxxxxxxxxxxxxxxxx