I don't understand, how does this have "little to do" with NAFTA? Whose naive view is it that production will move? I mean, call me naive, but we could also make laws that say production won't be moved.
The monetary policy works hand-in-hand with NAFTA and immigration policies so that capital is free to wander the globe, sloshing around and popping off asset bubbles while workers feel the boot. Again... my naive view.
I agree that trade is required for trade deficit and freer trade (e.g. NAFTA) is an accelerator. I say "little to do" because to me the important issue is whether we have a system where the currency ensures trade means trade deficit or a system where currency helps to balance trade.
The monetary policy works hand-in-hand with NAFTA and immigration policies so that capital is free to wander the globe, sloshing around and popping off asset bubbles while workers feel the boot. Again... my naive view.