Pincus duels the Edwards Dragon
by C H
‘In conclusion, Edwards seems to have had difficulty in applying the System of National Accounts to the issue, he confuses GDP, GNP and economic welfare and he does not understand the redistributive effect of a rise in the exchange rate. As a result, Edwards greatly understates both the benefit of the boom and the burden of adjustment caused by the fall in the international terms of trade.’ – Pincus at the Lowy Interpreter
Quite a charge to level at a member of the Reserve Bank Board. Very much worth reading the article in full. It validates my skepticism of Edwards, but I wasn’t even close to having the nous to pick it apart the way Pincus does.