Since 2016Q4, the Net International Inestment Position of the US has become more negative.
Category Archives: exchange rates
The Dollar’s Value under Pressure
The dollar’s value has come under pressure recently. Does this mean the dollar’s role as a key international currency is at threat?
“The US and China in the global order: the role of the dollar and tensions with China”
Yesterday, I had the pleasure of joining a virtual panel sponsored by the Official Monetary and Financial Institutions Forum (OMFIF), is think tank covering central banking, economic policy and public investment.
On the Eve of “The Deal – Phase 1” Signing
Currency manipulation or not? The Treasury’s semiannual foreign exchange report, released yesterday, says no, contra Mr. Trump’s statement a few months ago.
Guest Contribution: “How Are Uncertainty and the Uncovered Interest Parity Condition Related?”
Today, we are pleased to present a guest contribution written by N.R. Ramirez-Rondan and Marco E. Terrones (Universidad del Pacifico).
Guest Contribution: “The currency composition of foreign exchange reserves”
Today, we are pleased to present a guest contribution written Hiro Ito (Portland State University) and Robert N. McCauley (formerly Bank for International Settlements). The views presented represent those of the authors, and not necessarily those of the institutions the authors are or were affilliated with.
The Fama Puzzle at 40
Fama (JME, 1984) was published 35 years ago, but the earlier — perhaps the earliest — appearance of the Fama regression is in Tryon (1979). While the puzzle has largely persisted since then, it has seemingly disappeared since the global financial crisis.
As Long as Trump Tweets His Way Randomly through the Trade War, the Dollar Will Stay Strong
Modern asset-based models are based upon fundamentals such as money stocks, incomes, interest and inflation rates mattering. But the dollar — in which safe assets like Treasurys are denominated — is special in that risk also matters.
Back-of-the-Envelope Calculation of Trump Induced Dollar Appreciation
Undervaluation, Misalignment, and China in the 2019 IMF External Sector Report
Donald Trump’s pronouncements can typically be taken as contra-indicators. In other words, what he says is invariably wrong. So, you gotta wonder on China…
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