Martin Hart-Landsberg wrote:
>On Sat, 17 Jan 1998, Rosser Jr, John Barkley wrote:
>> 3) If China does not devalue, one can expect
>> eventually even the pathetic Indonesian rupiah to bounce
>> and go up. After all, these countries were almost all
>> running current account surpluses (well, not ROK), prior to
>> the crashes. Their currencies are all now way undervalued
>
>The above is not true. Thailand, Malaysia, Indonesia, and South Korea
>were all running large and growing Current Account deficits. The deficits
>were especially large as a percentage of GDP in Malaysia and Thailand,
>about 6-8%.
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.
Doug
