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Grigory
is on page 81 of 416
Two examples in the chapter on currency: Germany in the late 70s and USA in the 80s
Germany had a positive trade balance, and the currency was appreciating, but inflation stayed low. That attracted a lot of capital.
+e -> -p (real price for import etc) -> =ep => =T < +S -> +e
The US had negative trade balance but high interest rate attracted capital
+e +i -> +S > -T > +e -> +S > -T
— Jan 07, 2022 10:52PM
Germany had a positive trade balance, and the currency was appreciating, but inflation stayed low. That attracted a lot of capital.
+e -> -p (real price for import etc) -> =ep => =T < +S -> +e
The US had negative trade balance but high interest rate attracted capital
+e +i -> +S > -T > +e -> +S > -T
Grigory
is on page 69 of 416
Examples in theory chapter: conglomerate boom, REITs, tech boom in 70, venture capital boom beginning of 80s, merger boom of mid 80-s
— Jan 07, 2022 12:35PM
