Jon Sindreu on Global Financial Flows and the Balance of Trade
Macro Musings with David Beckworth
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What's the Under Consumptionist View?
The idea that funds flow into the united states and they have to be offset somehow. The question is causality. Which way do they flow? And maybe another way of fraing this is, what are the motivations for these foreigners purchases of us. Treasuries and theree? This has also been maybe, i think, framed as a mercantiles view or a precautionary view. They're trying to generate growth at home. China has to employ so many people as people move from the countryside to the citie s tit's an export growth driven strategy. As a result, trade has to be big to support that. So whatis the under consumption right? It'sit's
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