The other people in the fixed exchange rate area that don’t receive the transfer.
So the Greeks etc. The same people that the Germans have been exporting their unemployment to for twenty years
So the Greeks etc. The same people that the Germans have been exporting their unemployment to for twenty years
Same as the Chinese have done with the USA - except with a fixed exchange rate.
You get the same within a country when the counteracting transfers are insufficient. London booms and Birmingham declines.
It does, however, not bring me any closer to understanding the "exporting unemployment" statement. I guess it is some kind of multi-step reasoning that is eluding me, or maybe it is an example of a control illusion? I don't know.
Yes, but only if it is guaranteed that their imports would depreciate similarly. Otherwise, say, Germany would devalue the Deutsche Mark but then run into the risk of importing produce from The Netherlands at a higher cost.
> It does, however, not bring me any closer to understanding the "exporting unemployment" statement.
The monetary policy after the 2008 crisis forced poor countries to cut public spending so that industrial economies could be bailed out. As a metaphor, the potentially unemployed factory worker from Germany was replaced an actual unemployed public service worker in Greece.
If it does why is there so much moaning about the dependency ratio?