We propose a new focus: incorporating the underlying shocks that cause exchange rate fluctuations when evaluating how these fluctuations ‘pass through’ into import and consumer prices.
Category Archives: exchange rates
Commodity prices and exchange rates
The dramatic decline in the prices of a number of commodities over the last 16 months must have a common factor. One variable that seems to be quite important is the exchange rate.
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Guest Contribution: “Games Countries Play”
Today we have a guest contribution written by Jeffrey Frankel, Harpel Professor of Capital Formation and Growth at Harvard University, and former Member of the Council of Economic Advisers, 1997-99. This post is an extended version of a column that appeared in Project Syndicate.
Links: Housing Bubbles, Trilemma, Policy Timing Uncertainty
Food for thought over the long weekend.
Today’s Employment News and Asset Prices
Just an observation regarding the impact of the employment “news” (see [CR]) and inferred expectations of a rate hike in December, and the announcement effect on the dollar’s value.
The Opening of the American Macroeconomy and the Implications for Monetary Policy
Or, why I think Governor Brainard is right to say it’s too soon to tighten.
How Are Emerging Markets Responding to Anticipated US Tightening?
Just back from England and a couple of presentations, one at the CCBS on the Trilemma and monetary policy spillovers. Here are three graphs, related to the presentation, which illustrate how policymakers in different emerging market countries are responding to the stresses their economies are undergoing.
Outsourced Monetary Tightening
From Zeng and Wei in the Wall Street Journal today:
Central banks around the world are selling U.S. government bonds at the fastest pace on record, the most dramatic shift in the $12.8 trillion Treasury market since the financial crisis.
Yuan Undervaluation?
As noted in The Hill, from a letter written by key House and Senate leaders to President Obama:
The continued misalignment of China’s currency is unsustainable and unacceptable.
Guest Contribution: “The 30th Anniversary of the Plaza Accord”
Today we are fortunate to have a guest contribution written by Jeffrey Frankel, Harpel Professor of Capital Formation and Growth at Harvard University, and former Member of the Council of Economic Advisers, 1997-99.