The political world and the teacher of international relations, Henny Oysi sugar“The dedicated teacher” said that there is a structural problem in the global economy, and has highlighted the defects in the international trade system that “has been going on for decades.” According to him, these distortions constantly lead to excess countries, such as China, Germany and South Korea.
The analysis was while participating in the program WW and privateWith William Wak, who discussed the global scenario with the definitions imposed by the US government.
HOC argues that global consumption depends only on the lowest price, especially with regard to China, is a major economic distortion. “The competitive advantage is that you have the lowest cost of an alternative opportunity and this contradicts the current approach that focuses on absolute prices,” he explained.
Artificial economics and global imbalances
Cukier criticizes the Chinese economic model, describing it as “completely artificial.” It refers to practices such as manipulation of the exchange rate and the support supported and the transfer of income from the individual to the productive sector.
According to Professor HOC, China has developed a fruitful ability that could not absorb internal, and export this imbalance to the world.
By addressing Trump’s customs tariff measures, Kokir doubts its effectiveness of solving the structural problems of the global economy.
“There are many variables in the global economy, with a global value chain, with many inputs that come from many places, there are many effects that the damage to the entire system can cause, and the United States will not appear better.”
The role of the dollar as a reserve currency
Professor HOC also discusses the effects of the dollar as an international backup currency. He explains that, through accountability, the country’s supplier will inevitably have an incomplete commercial balance.
“If you have a capital account and a positive financial account, because you enter money from all over the world because you are the value currency, and the reserve, your commercial balance will be negative,” he explains.
The political world concludes that if Trump is really concerned about the American deficit and wants to reformulate the United States, he will need to think about more severe solutions, as it is likely to give up the dollar as an international currency.
Cukier warns that “collapse with the economy of the world” will simply not be sufficient to solve the structural problems faced by the global economy.
WW and private
Before William WakThe program is broadcast on Sunday at 10 pm on all platforms CNN Brazil.
