Fair as long as demand is as elastic as it used to be. Like if everyone has a phone now it will be harder to sell new phones. And good for pointing out a critical assumption behind the article - that CA surplus will…
Did you mean that China can just decrease domestic price and sell the goods to domestic consumers?
If they are more elastic it means that demand is more responsive to price hikes. This is opposite to your conclusion
Studying economics for some time, I think economists often ask wrong questions. So let's say trade war occurs, and china will lose some of its exports. The main question is not whether savings would decrease or…
Fair as long as demand is as elastic as it used to be. Like if everyone has a phone now it will be harder to sell new phones. And good for pointing out a critical assumption behind the article - that CA surplus will…
Did you mean that China can just decrease domestic price and sell the goods to domestic consumers?
If they are more elastic it means that demand is more responsive to price hikes. This is opposite to your conclusion
Studying economics for some time, I think economists often ask wrong questions. So let's say trade war occurs, and china will lose some of its exports. The main question is not whether savings would decrease or…