22

It's not clear what level of answer you're looking for, so here is a much more basic answer. There are indeed many exchanges with many different prices. However, if you have noticed that you could make money by exchanging your BTC for USD, exchanging the USD for SEK, and then exchanging the SEK for slightly more BTC than you started with - then someone else ...


8

Economic analysis always requires making some assumptions at some point. The assumptions that you make should try to fit reality the best that they can. Regarding your specific situation, there is a term in economics that might be helpful in describing what's going on: "Market Segmentation." This is a topic that is often studied in the asset ...


7

This is a long comment that is too long for the comment box. In fact, many research projects in US are secretive, especially the ones related to military. At the same time, much, much more research projects in China are secretive, including some agricultural ones, which are not military-related but considered as national security-related by Chinese ...


3

Your model has $\beta_3 * t$, which is a linear time trend, not time dummies. If that's correct, you are controlling for only a linear trend. Because oil prices do not have a perfect linear trend, you can include them. But I am not sure you really want the linear trend specification instead of time dummies (say, $\beta_{3t}$). For a model with common time ...


3

$π = φ^{(σ−1)}*\frac{f_E+f_D}{φ^{(σ−1)}*(1+τ^{(1-σ)})}+φ^{(σ−1)}\frac{f_E+f_D}{φ^{(σ−1)}*(1+τ^{(1-σ)})}-f_E-2f_D$ $π = 2\frac{f_E+f_D}{(1+τ^{(1-σ)})}-f_E-2f_D$ $(1+τ^{(1-σ)})π = 2(f_E+f_D)-(1+τ^{(1-σ)})f_E-2(1+τ^{(1-σ)})f_D$ $(1+τ^{(1-σ)})π = 2f_E+2f_D-f_E-τ^{(1-σ)}f_E-2f_D-2τ^{(1-σ)}f_D$ $(1+τ^{(1-σ)})π = f_E-τ^{(1-σ)}f_E-2τ^{(1-σ)}f_D$ $(1+τ^{(1-σ)})π = ...


3

You can calculate domestic economic activity by calculating GDP and subtracting net exports. Any activity that requires dealings with foreign country will be recorded as either export or import. Once you subtract exports and imports from GDP you are left just with domestic activity.


3

Answer to the Question on Welfare The welfare analysis is not as simple as that. First, let us set aside for a second any inequality considerations (we can add them on later but there are some misconceptions about welfare analysis that have to be corrected first). Welfare in supply-demand analysis is conventionally measured by amount of consumer and ...


3

Often a good answer consist the most of shedding light on some aspects of the terms of the question itself. I hope a couple of remarks could be useful. About causality, the fact is that current deficit implies reserves exit from USA, which only can be supported by reserves entering, otherwise resulting in a diminishing stock of reserves, eventually ...


2

No, for several reasons. WTO deals with trade disputes between nations when one nation creates legislature that breaks WTO rules or some pre-existing trade agreement. For example, one of the most important WTO rules is the most favored nation principle which says that (WTO, 2020): countries cannot normally discriminate between their trading partners. Grant ...


2

Following the strategy of @tdm, I found lecture notes by prominent trade economists Dave Donaldson, Gregory Corcos and Isabelle Mejean, and Alexander Tarasov. I have written their equations below. Since their equations for the wage ratio $\omega$ that balances trade led to the same solution as my equation, I think that the original Krugman paper must have a ...


1

Stronger currency means that suddenly everything in India becomes more expensive for foreigners. When things become more expensive there will be less demand for Indian exports. For example, if the original exchange rate is 1 dollar for 100 rupees and one bread costs 100 rupees. Now if the rupee gets stronger and now the new exchange rate is 1 dollar for 50 ...


1

Being integrated into the global economy means that country increases its trade openness and lifts restrictions on capital flows (you can look at this paper). The article does not say that China's output slowed down. It says its rate of growth slowed down. Usually, a country that used to be closed and did not trade much before experiences a boost in the rate ...


1

Quote... "Suppose the PBOC buys a bunch of dollar-denominated bonds, using its dollar reserves. All else equal, what effect should this have on the yuan-USD exchange rate?" Quote... " I am having trouble seeing whether or why it might cause the yuan to depreciate". All else is not equal. To return to the original quantity of USD money ...


1

A quote would be on an exchange, and currency involved is whatever is specified on the exchange. There may be multiple exchanges - with different prices. (Price deviations between markets for financial assets are normally small, but that depends on the exchanges being liquid.) Data providers translate those quotes to other currencies based on the appropriate ...


1

There is an economic literature on optimal currency areas. However, that is related to the adoption of a single currency. As described in the question, a basket is just a new asset that is a weighted allocation to underlying currencies. Once the weightings are fixed, the fair value of the basket is the weighted value of the component currencies, which can be ...


1

How China Influences the U.S. Dollar https://www.thebalance.com/how-does-china-influence-the-u-s-dollar-3970466 For export transactions to United States companies/consumers, Chinese firms typically receive dollars as payment for their exports. These firms then deposit the dollars into local banks, in exchange for yuan, which can be used to pay their ...


1

It all comes to taxonomy. By definition of non-tariff barrier (Beghin 2016): Non-tariff barriers (NTBs) refer to the wide range of policy interventions other than border tariffs that affect trade of goods, services and factors of production. Most taxonomies of NTBs include market-specific trade and domestic policies affecting trade in that market. Extended ...


1

I might be wrong but the key point is the perspective. From your question I saw a very interesting word: enemy. I understand that some entity would be against telling the enemy about his knowledge and is mostly true: US didn't gift the blueprints of the nuke bomb to the URSS. But, that is because there is top confidential information that may not be good to ...


1

As "High GPA" has rightly pointed out, most of the military and national defence research tends to be confidential. Added to that, any specific area where having some specific knowledge can result in monetary benefits follows a similar pattern. This is best exemplified by the existence of patents. Additionally, there are monetary and social ...


Only top voted, non community-wiki answers of a minimum length are eligible