From Bloomberg:
President Donald Trump’s administration is considering a new tactic to discourage China from undervaluing its currency that falls short of a direct confrontation…
Category Archives: international
“Who Will Pay for the Wall?”
That’s the title of a new post written by me, on Econofact. Short answer to the question posed: not likely just the Mexicans…
WaPo: Federal agents conduct immigration enforcement raids in at least six states
From the article:
Officials said the raids targeted known criminals, but they also netted some immigrants without criminal records, an apparent departure from similar enforcement waves during the Obama administration. Last month, Trump substantially broadened the scope of who the Department of Homeland Security can target to include those with minor offenses or no convictions at all.
Exchange Rate Prediction Redux
That’s the title of a new European Central Bank working paper (coauthored with Yin-Wong Cheung (City U HK), Antonio Garcia Pascual (Barclay’s), and Yi Zhang (U. Wisc.)) just released.
Paying for the Wall/Fence: Tariff Edition
Tax reform (DBCFT) will not pay for the wall. A remittances tax will not yield sufficient revenues, except perhaps over many years. What about a tariff?
MacParity Defined Undervaluations: 3.7%, 8.5%, 50.2%
Those are estimated amounts of currency undervaluation, using the Big Mac index and the Penn Effect as of July 2016. Guess which currency is 3.7%, and which currency is 50.2%.
Paying for the Wall/Fence: Capital Controls Edition
Can we fund the partly see-through wall by taxing worker remittances?
More on the Trade Deficit and Economic Growth
In an EconoFact post from Saturday, Michael Klein and I noted that usually for the US, the trade deficit grows during times of robust economic growth.
What Explains the Trump Dollar?
Elevated real interest rates and policy uncertainty explain a dollar about 4% higher than election day.
Chinese Forex Reserves Continue Declining
Hard to argue the PBoC is manipulating the yuan to keep it weak, especially as capital controls are being tightened. But who listens to facts any more?