Chapter 2 global imbalances

Abstract

A news report from South Africa reads, “Clothing and Textile Workers’ Union (SACTWU) members held a string several meter long with 40,000 pieces of fabric attached to display their agitation over cheap Chinese imports which has claimed thousands of jobs loss. Due to cheap Chinese imports over 67,000 jobs had been lost and more than 350,000 people have been suffering who were engaged in clothing, footwear and textile sectors.” A saver in Southeast Asia once complained, “When I opened up my dollar savings account about 3 years ago, I bought a sizable amount of the green bucks at Philippine peso 56.40. Today, the peso–dollar exchange rate stands at Philippine peso 43.27. That's a net loss of Php13.13 for every dollar that I have in the bank. That loss closely amounts to a brand new car or a down payment for a house and lot. And I thought going with a dollar savings was the best fiscal move I made in years.” Other savers in many countries are also affected since their local currencies have become much stronger against the U.S. green bucks.

Citation

Azis, I.J. (2009), "Chapter 2 global imbalances", Azis, I.J. (Ed.) Crisis, Complexity and Conflict (Contributions to Conflict Management, Peace Economics and Development, Vol. 9), Emerald Group Publishing Limited, Leeds, pp. 5-23. https://doi.org/10.1108/S1572-8323(2009)0000009005