Product margin adjustment to the great trade collapse

From a paper (Ungated/Scribed version here) by Shang-Jin Wei and Qingyuan Du: China and several other economies in Asia are experiencing an increasingly more severe relative surplus of men in the pre-marital age cohort.

Offi

As the euro has plummeted against the USD, there's been concern that efforts to rebalance the global economy will face increasing headwinds. [Bergsten] [Duy]. This worry is only added to by the already widening US trade deficit [1].

Article written by Prieur du Plessis, editor of the Investment Postcards from Cape Town blog.By Cees Bruggemans, Chief Economist of FNB.

The report below comes courtesy of Nouriel Roubini’s team of analysts at RGE.The chef on the Titanic is said to have survived the icy waters by thinning his blood with booze as the band played on. China’s approach to the global financial crisis followed a similar strategy.

Causes, Consequences and Prospects, edited by Richard Baldwin From Baldwin's introductory chapter:

Gita Gopinath, Oleg Itskhoki, Brent Neiman, 28 July 2012The sharp decline in trade values during the recent global recession has captured the attention of both policymakers and academics. This column presents recent research sowing that, within differentiated sectors, the great collapse was one of trade quantities and not one of trade prices.Full Article: The Great Trade Quantities Collapse

My colleague, Charles Engel, has a new paper entitled The Real Exchange Rate, Real Interest Rates, and the Risk Premium, in which he tries to identify what characteristics an exchange rate model must possess in order to explain two stylized facts. ...The well-known interest parity puzzle in foreign exchange markets finds ... the high interest rate country tends to have the higher expected return in the short run.