Macroeconomics: Trade and Foreign Exchange
Big Mac Index (3/12/2010)
The big mac index provides an interesting perspective into the determination of foreign exchange rates.
The big mac index provides an interesting perspective into the determination of foreign exchange rates.
Dividing the Pie (5/13/2010)
Over-extended American consumers provided the ultimate market for consumer goods exported from low-wage countries that are willing to sell on credit.
Over-extended American consumers provided the ultimate market for consumer goods exported from low-wage countries that are willing to sell on credit.
Farming the Wind (1/23/2010)
China is tapping US economic stimulus fund to build wind farms in the US.
China is tapping US economic stimulus fund to build wind farms in the US.
Free Money? (5/12/2010)
The dollar as an international reserve currency allows the United States to pile up huge budget and trade deficits as export-surplus countries accumulate dollars for their foreign exchange reserves.
The dollar as an international reserve currency allows the United States to pile up huge budget and trade deficits as export-surplus countries accumulate dollars for their foreign exchange reserves.
Hong Kong Housing Boom (1/21/2010)
The low interest rates intended to stimulate the recessed US economy after the US housing bust in 2007 – 2009 have inadvertently led to a housing boom in Hong Kong when Hong Kong has to lower its interest rates to defend its dollar peg.
The low interest rates intended to stimulate the recessed US economy after the US housing bust in 2007 – 2009 have inadvertently led to a housing boom in Hong Kong when Hong Kong has to lower its interest rates to defend its dollar peg.
Less than Meets the Eye (1/22/2010)
China’s apparent heavy dependence on exports for its GDP growth conceals the low value-added contents of its exports.
China’s apparent heavy dependence on exports for its GDP growth conceals the low value-added contents of its exports.
Moving Up by Staying Put (8/30/2001)
American companies are increasingly outsourcing back-office and software design work to highly skilled but lower-cost English-speaking foreign workers.
American companies are increasingly outsourcing back-office and software design work to highly skilled but lower-cost English-speaking foreign workers.
Sinking Dollar (1/21/2010)
The US dollar has been losing its value as an international reserve currency due to its persistent trade deficits.
The US dollar has been losing its value as an international reserve currency due to its persistent trade deficits.
To Revalue or Not to Revalue – The Yuan Story (1/23/2010)
The Chinese yuan may be under-valued against the US dollar, but yuan revaluation is unlikely to substantially reduce US trade deficit with China.
The Chinese yuan may be under-valued against the US dollar, but yuan revaluation is unlikely to substantially reduce US trade deficit with China.
Too Global To Be National? (6/18/2010)
US multinationals fatten their bottom lines by arbitraging wages, taxes, and regulations across countries.
US multinationals fatten their bottom lines by arbitraging wages, taxes, and regulations across countries.
