Examining China: Economic Growth, Exchange Rates, and Relative Stock Performance
Abstract
Up to this point, enough relationships between the household net worth versus the trade balance as a percent of GDP and real GDP versus employment growth have been accumulated. So far, we have provided a parsimonious explanation for the various relationships, and that suggests that our theory, at the very least, has a great deal of explanatory power. In this section, we will further test the explanatory power of our views, as we extend the analysis to the relationship between these variables and the foreign exchange value of the dollar, and stock market relative performance.
Keywords
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