> On Sun, 12 Oct 2003, Doug Henwood wrote:
>
> > Anwar Shaikh argues very convincingly that long-term exchange rate
> > movements are determined by differentials in productivity growth
> > rates.
>
> Do you remember what book or article he makes this argument in?
>
> Michael
===================
In addition to checking out the papers on his webpage, look at paper # 250 at the Levy Institute:
"Explaining Long-Term Exchange Rate Behavior in the United States and Japan" September 1998 http://www.levy.org/
..........oh hell, that's on his home page now as well......:
http://homepage.newschool.edu/~AShaikh/papers.html
Re: #250, the stuff on page 6 and appendix A is real interesting and for more detailed exposition see Ed Chilcote's "Vertical Integration and Classical Economic Theory:
http://www.gre.ac.uk/~fa03/iwgvt/files/98sat1c-chi.rtf
Finally, check out the paper by Tom Palley on how sustained exchange rate misvaluations can mess up the very meaning of comparative advantage: http://csf.colorado.edu/forums/pkt/2003II/msg00359.html [scroll down the page...]
Ian