Markets Link the World

One of the themes of our textbook, Modern Principles, is that Markets Link the World. Here’s a great illustration of that theme showing how markets link China’s One Two Child policy to New Zealand dairy farmers and the New Zealand dollar. It’s also a great example of how quickly financial markets incorporate new information.

 

For another example see our MRUniversity video I, Rose and the discussion in our textbook.

Hat tip: Lars Christensen.

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