There is no better industrial policy than an undervalued (competitive) currency; Latin American countries (notably Mexico) systematically got this wrong by letting currencies float and opening capital accounts, causing appreciation that kills new investment at the margin in tradable industries, while Asian countries carefully prevented appreciation.

causalpending

Speaker

Dani Rodrik

Evidence Quote

there is no better Industrial Policy than our valued currency

Source

Dani Rodrik on Globalization, Development, and Employment 04/11/2011EconTalk
Created: 6/16/2026, 2:24:26 PM

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