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
