Session 1: Dani Rodrik (2008), "The Real Exchange Rate and Economic Growth." Some notes:
How do you keep undervaluation going for long? It produces, as we saw in Europe at the end of the 1960s and as we see in China now, rather a lot of inflation. What are the long-run costs of that inflation? Is there a link between the success of European development in the 1950s and 1960s and the long period of prolonged high unemployment in the 1970s and 1980s?