As the dollar hits a new low against the euro [0], some thoughts on what arguments make sense, given our knowledge of the statistical properties of real exchange rates.
Category Archives: financial markets
What Explains Deviations from Interest Rate Parity in Emerging Markets?
Some people have the impression that financial capital zips to wherever the returns are highest. Maybe that’s the case. But I’m not sure.
Crony Capitalism Comes (Returns?) to America
International Aspects of Tax Policy in the 2008 Economic Report of the President
The tax policy chapter of the ERP is quite interesting, in part because I have a sense of deja vu [1], [2] when reading the cross-country/international sections.
No-doc loans
Just an anecdote, but an interesting one.
Thinking about Monetary Policy Efficacy: Back to the Textbooks
As the Fed drops interest rates, I’ve been trying to sort out all the channels that monetary policy will affect output, and which ones are likely to be short circuited this time around.
Fed rate cut
Today the Federal Reserve announced a further 50-basis-point cut in its target for the fed funds interest rate, bringing it down to 3.0% for a total reduction in January of 125 basis points. How long should it take before this has an effect on the economy?
Another day, another dollar
It was a fun day to be a macroeconomist, don’t you think?
Will inflation fears restrain the Fed?
I think not, and here’s why.
How low will Ben go?
Was 25, now we have 50. Do I hear 75?