Jeff, United States, Abel discussed on C-SPAN

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The leads a little extra drive the real exchange rate in this is not a way to run a stable monetary system this is the cause of instability that come now to my first idea how big is the job loss and i'm really going to punch on the numbers somebody else contue at one of chefs phd students uh but if you think that sort of value added per worker in us manufacturing is five hundred thousand dollars that's a very very large number relatives wages you've come to the conclusion that a 100billiondollar oh a one billiondollar trade deficit would lead to a loss of of twenty thousand jobs and on eight hundred billion dollar trade deficit would lead to a loss of a million six hundred thousand fill of the numbers of very large and we need to understand how large the job laws has been because of the trade deficit uh we may not be able to identify who with loss for jobs but we would all i think share the conclusion that live essentially the trade deficit were to gradually decline the employment in manufacturing broadly conceived would increase let me come now to a second issue the incidentally the trade deficit begins his jeff's said in the early 1980's and its associated with a change i would say uh in the international monetary system it was the large variability that we've had a in the price of the was store first half the viji ladies the price of the us vote or when it a fifty percent a very large change you'll remember i was than in the midwest the bid was was being hollowed out of the iron belt became the rust belt and that was essentially part of the adjustment to follow the changed the increase in the in the in the in the price of the you with you a slow bowler now when i think about the crowdingout crowding in distinction i am reminded of the question that must have been this room earlier counterpart in the early nineteen nineties when somebody of serb what would dumb what would the hell with the us treasury finance its fiscal deficit if the boj word abel were lied to by you with rubber securities so let's go through this if the bank of japan the not by you with rovers the price of the.

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