Depends on the price elasticity. If the price of jellybeans goes down, do you spend more or less on jellybeans? But I should beg off on this. I don't do trade. --mbs
> Wouldn't a decrease in the total cost of goods lead to a *decrease* in the > demand for dollars? In which case, the rest of the mechanism: > > > cost of dollar (and good, in importer's currency) go up, cost advantage > > disappears. > > would be thrown into reverse, and the currency swings would reinforce the > effect of the original subsidy. > > Michael > __________________________________________________________________________ > Michael Pollak................New York [EMAIL PROTECTED] >
