CompuServe Messages

Matthew, Interesting observation on how the old economic norms no longer work: Conventional wisdom among economists is that as the dollar weakens against the yen, US exports to Japan should rise, and imports decline. Well, the dollar is weaker than ever — much more so than a decade ago when the economists knowingly predicted our balance of payments problem would soon ease as Japanese businesses couldn't further cut margin. More pertinent, Americans now prefer many Japanese goods at any price. Whoops!