So China wants to adopt a basket peg because it no longer thinks the dollar is a stable store of value. To quote Mr. Fan, Director of China’s National Institute for Economic Research:The U.S. dollar …

The Washington Post put out an oped on the partial privatization of Social Security over the weekend, which Kevin Drum appropriately jumped on.One item in the oped jumped out at me:The second risk i…

Dan Drezner started a post with the Triffin dilemma, so I figure I too can digress into the realm of history.The Bretton Woods system of fixed exchange rates (Bretton Woods 1) collapsed, in some sens…

I suspect most people who read this blog also read Nouriel Roubini’s blog, and probably David Altig’s blog as well. So the Roubini/ Altig debate over the risks associated with foreign central bank f…

This week’s Economist looks at the "paper" losses that central banks issuing local currency (or selling local currency debt) to buy foreign exchange reserves would incur in the event of the revaluati…