Coming back to our discussion, given the problems with sustained or aggressive intervention in the face of sharp movements in exchange rate– leaving aside its optimality or desirability – what tools do we have to deal with it?
Most of the cyclical part of the slowdown in trade should be reversed as the global economy recovers, even if that is a slow process. Furthermore, there are opportunities for progress on the structural side in terms of both trade and productivity if conditions permit another wave of global integration.