In my post on the dollar’s trajectory, one person asked about purchasing power parity (PPP). Here is a brief discussion of the relevance of this concept to exchange rate forecasts.
Author Archives: Menzie Chinn
Postscript to “Critique of Pure Dark Matter”
Mixed news for 4th quarter net income in the current account release
Where are the financial crises?
Some other possible consequences of monetary tightening.
Some views on the dollar’s trajectory
Judgment, theory and correlations in exchange rate modeling.
The downward march of the trade balance
Some context for the the latest trade deficit numbers
Do (budget) deficits matter?
Thinking about what happens to interest rates when foreign capital inflows slow
Where Do All Those Numbers Come From
Are we adequately funding knowledge about the economy?
Just how implausible is a gasoline tax?
New poll results on energy
A Critique of Pure Dark Matter
Net income on the balance of payments might be essentially zero in 2005q4
Tackling “Oil Addiction”?
Cognitive Dissonance in the 2006 Economic Report of the President