Author Archives: Menzie Chinn

More on Real Exchange Rate Changes and Trade Adjustment

Time for an update on estimated income and price elasticities of US trade flows. These issues are important to those of us who believe that the US remains vulnerable to shifts in the rest-of-the-world’s willingness to finance the current account deficit. If you think it’s just jolly fine and likely for the US to keep on borrowing at around 6.5 percent of GDP for the indefinite future, skip this post.

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One (Non-Isolated) Example of the Current State of Affairs in Government Administration

From GovExec.com:

Special counsel finds GSA chief violated Hatch Act

By Daniel Pulliam dpulliam@govexec.com May 23, 2007

A report from the federal agency that investigates allegations of illegal political activity in the government has concluded that Lurita Doan, the head of the General Services Administration, violated the Hatch Act.

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Follow up on Housing Permits and Housing Starts: Do Permits “Predict”

In an earlier post on investment, I made the assertion that housing permits led housing starts. This assertion was contested by a number of observers (GWG, rana, spencer, CalculatedRisk). I’ve decided to revisit this question, since clearly, the best characterization of the stylized facts takes on heightened importance given the yesterday’s release, as discussed by Bloomberg:

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