Wednesday, October 21, 2009

IntelliBriefs: Why not try a trade system that optimizes each nation's interest?

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    • Therefore, for developing countries, it would be better to have a trade management system in which each country, not only developed ones, pays for its imports with its own currency. In that case, a developed exporting country would be obliged to buy from the country to which it exports. The system would not lead to a massive surplus for one country and a deficit for another, but rather to a balanced trade regime that benefits everyone.
    • Dipak R. Basu is professor of international economics at Nagasaki University.