MPDD Seminar Series on "The Real Exchange Rate, Sectoral Allocation and Development in China and East Asia: A Simple Exposition"
Global macroeconomic imbalances are among the key issues facing policymakers, especially in the US and China which are the two major affected / contributing parties. While there has been a great deal of discussion and disagreement on this important issue, what all sides have in common is the general failure to adequately pay attention to the role of the exchange rate in allocating resources internally between tradables and nontradables. These sectoral changes can have both real and macroeconomic consequences. The paper around which this seminar is based offers a simple analytical exposition of some of the issues relating to China's and East Asian development and their impact on global imbalances using a two-sector tradable and nontradables model.
This seminar was delivered by Ramkishen S. Rajan Associate Professor at the School of Public Policy, George Mason University (GMU) and co-director of the Center for Emerging Markets Policy (CEMP) at GMU. He is also Visiting Senior Research Fellow and joint coordinator of the Regional Economic Studies Program at the Institute of Southeast Asian Studies (ISEAS) in Singapore. His research interests include currency and financial crises, international capital flows, foreign direct investment, exchange rate regimes and reserve policies, and Asian economic regionalism. He has published articles in a number of prestigious academic journals and written several books. His most recent books are Monetary, Trade and Investment Issues in India, Oxford University Press, Exchange Rate Regimes and Macroeconomic Management in Asia, Hong Kong University Press (co-authored with Tony Cavoli) and Exchange Rates, Currency Crisis and Monetary Cooperation in Asia, Palgrave-MacMillan Press (editor).