Dollar Diplomacy

Max Sawicky sawicky at epinet.org
Mon Jul 19 13:59:37 PDT 1999


Seth Ackerman wrote:


> Doug, it sounds like you take a kind of Marxian line on exchange
>rates -- that policy is mostly futile, that rates are determined by
>fundamentals.

I find Anwar Shaikh's analysis of long-term exchange rates pretty compelling: they're determined by relative productivity differences. . . .


>>

Why would this market be grounded in fundamentals, especially something as relatively esoteric as productivity differences, while others are prey to animal spirits?

mbs



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