Wednesday, September 8, 2010

Globalization and Growth

Today's edition of The Wall Street Journal has an article (subscriber content at this writing) that really links growth to globalization. Here's the video that accompanies the article.

You might want to put the title of the article in your browser to see if you can find an ungated version of the whole story somewhere. But the video explains the salient points. And when you teach macro, this can provide a good insight.

As I've pointed out to my students, looking a net trade can be deceiving. One gets a much clearer sense of the importance of trade to the U.S. economy if you look at the absolute value (add the value of imports and exports).

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