66 Results for:

March 29, 2006

China
Exit Schumer and Graham, Enter Grassley and Baucus

Schumer-Graham won't be brought to a vote until September.   China's central bank governor Zhou must  be persuasive.  Maybe he plotted out where the RMB will likely be if China continues with…

August 9, 2007

China
The balance of financial terror, circa August 9, 2007

Back in early 2004, former Treasury Secretary Lawrence Summers highlighted the emergence of what he termed the "balance of financial terror."   China – and others – relied on the US for demand that t…

April 15, 2007

United States
Unimpressive (the results of the IMF’s experiment with multilateral consultation)

Macro Man asked the IMF to sort out a world where the US current account deficit is increasingly financed by the growth in emerging market reserves (and the expansion of a few investment funds).     …

April 6, 2008

Financial Markets
A RMB that isn’t appreciating cannot be killing you …

The premise of Joe Nocera’s New York Times story “Two factories, two firms” is logical enough: an appreciating RMB should hurt a low-end, cost-conscious textile exporter and help a higher-end manufac…

April 5, 2006

Monetary Policy
Where to invest 4.2 trillion? The latest IMF data on the currency composition of the world’s reserves

Via Menzie Chinn of Econbrowser comes word that the IMF has released its latest data on global reserves.   For reserve data and capital flows data geeks, this is big news.  I have been trying to use …

January 13, 2006

United States
On the origins of dark matter

Stephen "Current accounts almost always don't matter" Jen is intrigued by Ricardo Hausmann and Fredrico Struzenegger's discovery of dark matter.   Lots of others are too.   Michael Mandel for…

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June 23, 2005

United States
How does the Fed imagine the US current account deficit will adjust?

Greenspan does not think a revaluation of the RMB would have a major impact on the US trade balance.The Fed does not think that reducing the fiscal deficit would generate a major reduction in the cur…

June 10, 2008

Budget, Debt, and Deficits
Shhh.. don’t tell any one. The US trade deficit is getting worse, not better

The $60.9 billion monthly April trade deficit was the largest monthly deficit since last March. So much for the notion that the trade deficit has turned the proverbial corner. One price explains …

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January 28, 2009

Monetary Policy
Central banks were not the big buyers of synthetic triple AAA …

Ricardo Caballero argues that the current crisis stems from (flawed) efforts to construct safe assets out of risky assets in order to meet a surge in investor demand for safe assets. He is on to som…

September 27, 2005

United States
Savings gluts, investment droughts and the current global economy

Low yields in advanced economies lead capital (private capital that is) to head to emerging markets looking for yield.    Emerging markets - whether scared by the crisis that followed the sudden with…