Wednesday, November 17, 2010

Krugman with the Snow

Paul Krugman has a post where he makes a good use of the Swan diagram to explain how the trade issues between the United States and China affect both economies, and how they could solve each others problems (if China would let them). Here is the diagram. It is a good teaching tool - I wonder why more textbooks do not use it. here is the Wikipedia link with more about the Swan diagram.


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