Sunday, February 20, 2011

just keep your eye on export import prices

sure forex fiddles matter
but set your target path to balanced trade
and start fiddlin'
and watch for export import price responses
they are likely to be mighty sluggish

reversing  the trade balance effect
   of a long bout of unfavorable forex rates
  is obviously  a very protracted process
given firm price formation especially inter border pricing
why ought the forex induced distortion effect on trade balance
  take less time  going  out as coming on 

imagine the reconstruction of productive facilities  involved