Re: Re: RE: Re: Re: Did the boom benefit workers????

[Ignacio Perrotini Hernández <iph@xxxxxxxxxxxxxxxx>]

Dears James and Doug,
I do agree with Doug. There is an overwhelming empirical evidence in favor
of the hypothesis that exchange rate movements have contributed almost
nothing to economic growth in the last decades. Kaldor, Thirlwall, and
McCombie are good references on that. Hyperdeflation may have contributed
somehow to rising productivity. However, in the last analysis, despite New
Macroeconomists´ and monetarists' beliefs, the "successful" disinflation of
the world economy has  less to do with "smart" Central Banks' monetary
policies than with the high-tech revolution.
Ignacio

At 03:01 p.m. 26/03/02 -0500, you wrote:
> Devine, James wrote:
>
> > Is there any way that _measured_ productivity could grow due to a rising
> > dollar exchange rate?
>
> Can't see how. A lot of the rise in productivity is the result of crazy
> output growth in high-tech, because of the quality-adjusted price indexes.
>
> Doug