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Ratings Matter for the Euro Area

…Germany), debt is issued in a currency over which it has no effective control. Therefore, the foreign-currency rating is the one that matters. For foreign-currency ratings, external indebtedness and leverage…

No Bailout Plan

…own proposal. Text below. Commentary to follow: DRAFT No BAILOUTS Act Bringing Accounting, Increased Liquidity, Oversight and Upholding Taxpayer Security 1. Require the Securities and Exchange Commission (SEC) to require…

Exporting Gold Bugs to China

exchange rate peg. His claim seems to be that Chinese real GDP growth, which has been in excess of 8% per year since 1997, is due to its pegged exchange

…of inflation, not the cause. Krugman noted that in 1982 the real foreign-exchange rate of the U.S. dollar was sharply higher – and real commodity prices were sharply lower –…