The Role of Economists like Christian Broda

Much uproar has been witnessed due to the recent devaluation of the Yuen currency by the Chinese authorities. It has been viewed as a move to fix its exports, which has been on the dip for several months now. In the United States, some economists do not see the positive side of this argument. Those who support it view it as a means to get cheap imports from China.
Economists play an important role in any given country. They study, apply, and develop concepts and theories in economics with the view to coming up with appropriate economic policies. They also offer important insights on the performance of stock markets, currencies, and the performance of the economy through their expert analysis. They contribute to the development of policies touching on taxation, inflation rates, exchange rates and different market factors.
One successful economist is Christian Broda. He is a New York based economist. According to him, the amount of how rich you are depends on the salary you earn and the cost of the products that you buy. He argues that even if your salary is doubled and the cost of the goods remains high, it will still be difficult for one to afford such products. He considered it an advantage to the American consumers to have cheaper imports on the condition that quality standards are maintained.
Broda has been a University professor. His research focuses on addressing issues touching on International trade, microeconomics, and finance. Currently, he is an associate editor for the Journal of Development Economics. He is also a research fellow at the Bureau of Economic Research. In addition, he has published articles in the Journal of International Economics and the American Economic Review.
The devaluation of the Yuen had some rippling effects on the global markets. It raised fears about the Chinese economy as a whole. China is the second largest economy in the world behind the United States. Economists predicted different results with some giving optimistic forecast while others were skeptical of the situation. The move shook stock markets in Asia and Europe. Oil prices fell under $50 a barrel with Copper prices hitting low prices that had never been experienced over the last six years.
The above happenings cannot be solely attributed to the devaluation of the Yuen. This is because several countries are undergoing challenges in their economies thus, undertaking active measures to avert market crashes. Economic growth is on the slow. Only the United States has seen positive changes in the recent years. There has been improvement in the GDP and the employment rates have increased over the past few months. On the flip side, China’s economy has been on the slow with an 8% drop in its exports in the month of July.

Leave a Reply