EABER/SABER Newsletter November 2016
November, 2016
Economics is imprecise, and so are predictions made by economists. In the early 2000s, renowned economists argued that the so-called ‘US twin deficits’ were unsustainable, and predicted that a crisis accompanying a free fall of the US dollar was imminent. In the end, a major crisis did originate from the United States in 2008. But it was not a balance of payments or fiscal crisis, and in its aftermath, we saw a sharp appreciation of the dollar.