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September 2, 2008

Monetary Policy
Yes, Virginia – Creditors do sometimes get a vote …

This is Brad Setser again. Thanks to Christian Menegatti and Rachel Ziemba for filling in when I was away. It is only fitting to return with one of my pet themes: central bank demand -- or rather,…

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April 18, 2024

RealEcon
Baltimore Bridge Collapse Tests U.S. Supply Chains

The response to the temporary closure of the Port of Baltimore—from a deadly tanker collision—demonstrates the resilience of U.S. supply chains despite fears of costly disruptions.

A zoomed out view of the a cargo ship and the remains of a bridge, with a harbor in the background.

June 21, 2007

Financial Markets
Yes, Virginia, exchange rates do matter (JPY edition)

The yen depreciates.   Against the dollar, bien sur.   But especially against the euro and other European currencies.    Guess what happens?Japanese exports to Europe rose by nearly 18% (y/y) in May…

July 3, 2007

Emerging Markets
Yes, Virginia, exchange rates do matter: Indian Rupee (INR) edition

It seems like the rising cost of Bangalore software engineers is encouraging firms to produce more software in the US.Part of the (large) increase in the relative salaries of Bangalore software engin…

May 2, 2024

Economics
RealEcon: Reimagining American Economic Leadership

Matthew Goodman, distinguished fellow and director of the Greenberg Center for Geoeconomic Studies at CFR, discusses CFR’s new RealEcon initiative and the role of state and local officials in contrib…

Play Flag and Trade

December 18, 2007

United States
Yes, Virginia, the world’s central banks are financing most of the US current account deficit (my rebuttal to Richard Iley)

Back in the summer of 2004, Nouriel Roubini and I published a paper arguing that large trade deficits implied a deteriorating US net international investment position and a deteriorating “income” bal…

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