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1/5
I was just re-reading Jagdish Bhagwati’s 1998 article "The Capital Myth: The Difference Between Trade in Widgets and Dollars" on why free capital flows are not a corollary of free trade. The limited benefits of a more efficient allocation of... https://doi.org/10.7916/D8SJ1W9V
I was just re-reading Jagdish Bhagwati’s 1998 article "The Capital Myth: The Difference Between Trade in Widgets and Dollars" on why free capital flows are not a corollary of free trade. The limited benefits of a more efficient allocation of... https://doi.org/10.7916/D8SJ1W9V
2/5
capital are less than the costs of allowing speculative inflows and outflows that can seriously distort currency values, asset prices, lending standards, and interest rates.
Bhagwati points out that while there is plenty of evidence that free trade can create economic...
capital are less than the costs of allowing speculative inflows and outflows that can seriously distort currency values, asset prices, lending standards, and interest rates.
Bhagwati points out that while there is plenty of evidence that free trade can create economic...
3/5
benefits, the same argument for free capital flows is wholly ideological, based on no supporting data, and driven mostly by what he calls the Wall Street-Treasury complex. I would add that capital flow imbalances create trade flow imbalances that actually undermine the...
benefits, the same argument for free capital flows is wholly ideological, based on no supporting data, and driven mostly by what he calls the Wall Street-Treasury complex. I would add that capital flow imbalances create trade flow imbalances that actually undermine the...
4/5
benefits of free trade by outing downward pressure on net demand, as Matt Klein and I explain in our book.
By the way both John Maynard Keynes and Harry Dexter White, during the Bretton Woods negotiations, made...
https://yalebooks.yale.edu/book/9780300244175/trade-wars-are-class-wars#book-reviews
benefits of free trade by outing downward pressure on net demand, as Matt Klein and I explain in our book.
By the way both John Maynard Keynes and Harry Dexter White, during the Bretton Woods negotiations, made...
https://yalebooks.yale.edu/book/9780300244175/trade-wars-are-class-wars#book-reviews
5/5
similar points: freer trade can be justified, but freer capital flows cannot.
similar points: freer trade can be justified, but freer capital flows cannot.
