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Brad Setser points out that the analysis of the Eurozone's external position is significantly impacted by the activities of U.S. multinational enterprises seeking to avoid U.S. taxes through countries like Ireland.
Setser also mentions the ongoing challenge of convincing the IMF regarding these effects on financial data.
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Setser has previously noted that China requires large-scale exports to address rising supply, raising questions about global trade imbalances (article). He has also analyzed the impact of China’s stronger exchange rate fixes on spot rate movements and appreciation expectations (article). These observations contribute to ongoing discussions about financial flows and external balances.