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May 26, 2009

Monetary Policy
2007 all over again? The dollar, central bank reserves and US bonds

Lower interest rates in the US than in much of Europe and most emerging economies Slower expected growth in the US than in the emerging world Rising oil prices Falling dollar. That describes the …

dollar-euro-and-fx-reserves-4

January 2, 2005

Budget, Debt, and Deficits
Social Security Crisis in 2018? Ridiculous

Take a look at this Washington Post article by Jonathan Weisman, which the big blogs have justly pounced on. The initial framing of Weisman’s article is just way, way off. Social security in no way…

February 21, 2005

Budget, Debt, and Deficits
The confused conservatives on the Washington Post oped page …

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…

February 13, 2006

Monetary Policy
It is back. Bretton Woods 2 (central bank financing of the US)

Some would say it never really went away.Emerging market economies did not stop accumulating reserves in 2005.  Best I can tell, adjusting for valuation effects and including all the foreign assets o…

March 10, 2008

Monetary Policy
What are Zhou and al-Sayyari doing? Reserve management and the Fed’s balance sheet operations

Paul Krugman noted that his discussion of the Fed’s recent policy steps was rather wonkish. If that is true, my comments will be off-the-wonkish charts. I want to try to bring the actions of foreign …