Relevant and even prescient commentary on news, politics and the economy.

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A Strange Case for a Strong Dollar

…a host of exogenous variables including fiscal and monetary policy and have the exchange rate as an endogenous variable – assuming the exchange rate regime is floating. It’s not clear…

Yuan Revaluation

…gave China a 6-month warning to change its exchange rate or else. The yuan issue is clearly high on many people’s list of Things to Pay Attention To these days….

Evaluating the Soft Landing Scenario

…realignments is not good. That’s because a small change in a fixed exchange rate typically leads to increased speculative flows, not decreased speculative flows, which means that the fixed exchange

Trade Deficits and Devaluation

…correlation between a nominal exchange rate and the trade deficit? In fact – under floating exchange rates, there is no more reason to expect any particular correlation between the real…

…two in-between rules that involved reducing the average in exchange for increasing the minimum possible income. They then asked the students to design rules for how to divvy up society’s…