Featuring prominently in the new energy plan from President Bush is a call for changes in the corporate average fuel efficiency (CAFE) standards that the Administration claims could reduce U.S. gasoline consumption by 5% over the next 10 years. Here are some of the reasons I’m not thrilled by that suggestion.
Category Archives: international
The 2007 Economic Report of the President on Exchange Rate Determination (and the Renminbi)
The 2007 Economic Report of the President was released Monday afternoon. Chapter 7, entitled “Currency Markets and Exchange Rates,” is a laudable exegesis on the determination of exchange rates.
Is a 12 Step Program Needed for Policymaking in Washington?
A Race between Inflows and the Deficit
From today’s Reuters:
Manufacturing, Tradables, and Trade Adjustment
In his preview of the 2007 Economic Report of the President, CEA Chair Ed Lazear presented the argument that manufacturing output is still growing.
Macroeconomic Implications of War with Iran
Or, “Oceania has always been at war with Eastasia”. The speculation regarding imminent military action rises. What are the fiscal implications of a large scale missile campaign? What would be the repercussions of likely Iranian responses (including closing off the Straits of Hormuz)?
Exchange rates, output gaps and inflation rates
Is there any role for the Taylor rule in helping predict exchange rates?
Army Transformation sacrificed on the altar of …(a) tax cuts, (b) Iraq, (c) other
Or, “opportunity cost illustrated” redux. From GovExec.com:
Federal Government Interest Payments Rising
The Treasury Department reported a steady rate of purchases of Treasuries by foreigners (see the Bloomberg account here). Let’s hope that continues — although we should be cognizant of the ramifications: increasing debt and interest payments to foreigners.
The distribution of world income
One of the most profound questions in economics is why are some countries rich and others poor?