Ronald McKinnon, professor of international economics, Stanford University, contests the so-called conventional wisdom on the matter of exhange rates and trade deficits in a new working paper added to the CS Research Room.
Monthly Archives: May 2005
DUALISM IN EXTREMUS
France is said by some to be no friend to the United States on matters geopolitical, but when it comes to foreign exchange it’s hard to imagine a more obliging partner. Granted, the current French aid to the dollar is incidental, courtesy of Gallic independence in the form of France’s rejection of the European Union’s constitution on Sunday. But from a trader’s perspective, a rose by any other name would smell as sweet.
FRENCH FRIED REFERENDUM
For now, there are only questions. But Mr. Market will soon demand answers.
THE CAPITAL SPECTATOR’S RESEARCH ROOM DEBUTS
Today we unveil The Capital Spectator Research Room, a modest effort to highlight some of the essays, opinions and research papers that catch our attention for one reason or another. We may or may not agree with the conclusions in these pieces, but the ideas intrigue us. As we add to the list of notable links in the Research Room, we’ll update you here, with a short note. You’ll also find a permanent link to the Research Room in the upper-left hand side of the Capital Spectator’s main page. Happy reading!
BOTH SIDES NOW
The stock market yesterday was encouraged with the upward revision in first quarter gross domestic product. So too was the bond market. Can both markets be right?
ILLOGICAL EFFICIENCY?
You can see a lot just by observing, Yogi Berra famously said of the national pastime. The adage also applies to the stock market as well as to baseball. But in the process of observing equities and thereby seeing a lot, logic isn’t always forthcoming.
THE OECD BEFRIENDS THE DOLLAR
The OECD became the dollar’s new best friend yesterday when the Paris-based group issued a warning that the euro-based economy has stumbled and needs help regaining its footing. That’s hardly news, but the OECD’s Economic Outlook was compelled nonetheless to restate the obvious in yesterday’s newly released edition with the advisory that “what is badly lacking is sustained momentum in the euro zone.”
ONE METAL, TWO VISIONS
It’s never been easy being a gold bug, but now it’s getting complicated.
ECONOMIC CONFLICT
Is the economy slowing, or is it not? As usual, the answer depends on the data you’re consuming and the economist who’s got your ear.
CRUDE RHETORIC AND SLIPPERY PRICES
The price for a barrel of crude dipped below $47 today in New York futures trading, the lowest since early February. Among the proximate catalysts for the latest bout of bearishness for the commodity, which extends a sell off that began in early April, is news that U.S. inventories of crude continued to rise last week, according to the latest weekly petroleum report from the Energy Information Administration.