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Politics : View from the Center and Left
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To: JohnM who wrote (173291)10/8/2011 11:52:10 AM
From: JohnM  Read Replies (1) of 542454
 
Fascinating development. Click through on Krugman's first link to the FT article. Well worth reading.
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October 8, 2011, 10:13 am
Re-Shoring

Ugly new term, but apparently the new thing; it refers to companies moving production back to America from China. The fact that such stories are being heard is support for those (including me) demanding action on the renminbi, because they show that there is indeed a margin at which changes in Chinese dollar costs move production back to the United States, and hence that the undervalued renminbi directly costs US jobs, as well as having the indirect effects I’ve written about recently.

krugman.blogs.nytimes.com
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