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Strategies & Market Trends : Currencies and the Global Capital Markets

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To: Henry Volquardsen who wrote (16)5/4/1998 9:18:00 AM
From: yard_man  Read Replies (2) of 3536
 
>>budgetary balance<<

This appears to be a very temporary situation to me which is tied to current or even last quarters increased profitability. Do you think it is a long lasting phenomena?

>>a growth spurt then Europe
will suck in imports from the US so that will help our balance<<

Europe has very high unemployment right now, very high taxes. Do you think that monetary union -- i.e. reducing each countries flexibility in terms of monetary policy is really going to increase consumption enough to have a material impact on our exports?

Couple of more questions:

1) Aren't capital flows equivalent to the strength of the currency itself -- aren't we talking about the same thing?

2) Interesting point about services. Aren't these reflected in GDP as well? If so, how large are they as a percentage as opposed to goods?

Appreciate your discussion. Thanks in advance.
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