Recently added articles from The International Economy:

Paulson's GOP headache.(OFF THE NEWS)(Grand Old Party )(Brief article)

Mar 22, 2008 ... Washington insiders are keeping their fingers crossed that the credit risk associated with the GSEs Fannie Mae and Freddie Mac does not intensify. Early on in the subprime crisis, U.S. policymakers thought some form of bailout or capital replenishment of these institutions might be the ...

Japan's silver lining.(Off the News)

Mar 22, 2008 ... Tokyo financial strategists hardly failed to note that many of the sovereign wealth funds this year appear to have invested too early in U.S. and European corporate and financial assets. The thinking therefore is that because Japan's large multinational corporations already enjoy ...

The ECB's Ackermann weather vane.(Off the News)(European Central Bank)(Brief article)

Mar 22, 2008 ... European Central Bank strategists in mid-March were stunned when the head of Deutsche Bank, Josef Ackermann, at a private conference in Frankfurt surprised the audience by suggesting he had lost confidence in the "self-healing powers" of financial markets. He then called for measures going ...

King of Fed rate cuts (sort of).(Off the News)

Mar 22, 2008 ... [ILLUSTRATION OMITTED] The financial media have made PIMCO's outspoken Bill Gross into something of a celebrity for his pronouncements on the bond market. Gross's Total Return Fund amounts to some $113 billion under management, making it the world's biggest bond fund. So people ...

The dollar issue.(FROM THE FOUNDER)(Editorial)

Mar 22, 2008; Smick, David M. ... For more than a quarter-century, I have enjoyed a front row seat observing the world's most senior policymakers and financial traders grapple with the foreign exchange markets. At one point when he was chairman of the Federal Reserve, Alan Greenspan suggested that in the short term those ...

It's not just about the money.(The Monetary Realist)

Mar 22, 2008; Posen, Adam S. ... [ILLUSTRATION OMITTED] Financial panics are indeed dramatic and, for many private individuals and economic policymakers, traumatic. They are rarely of lasting significance to the fate of nations or their currencies, however, as the prompt recovery of Korea, Mexico, and Russia ...

A call for an "Asian Plaza": introducing an action plan for a new "G5"--China, Saudi Arabia, Euroland, Japan, and the United States.

Mar 22, 2008; Bergsten, C. Fred ... From 1995 to early 2002, the dollar rose by a trade-weighted average of about 40 percent. Largely as a result, the U.S. current account deficit grew by an average of about $70 billion annually for ten years. It exceeded $800 billion and 6 percent of GDP in 2006. This posed, and continues ...

The dollar will fall further: unless Europe and others take steps to stimulate domestic demand.

Mar 22, 2008; Feldstein, Martin ... When the euro's value reached an all-time high of $1.52, Jean-Claude Trichet, the president of the European Central Bank, told the press that he was concerned about its rapid appreciation and wanted to "underline" the United States Treasury's official policy of supporting a strong dollar ....

Reflections on currency regimes: the uncertainty of the dollar's future role.

Mar 22, 2008; Clarida, Richard H. ... Ten years ago, in the aftermath of the Asian-Russian-LTCM crisis, I was invited by Paul Volcker to prepare a report for the Group of Thirty on "G3 Exchange Rate Relationships: A Review of the Record and of Proposals for Change." Readers of TIE will recall, during that turbulent time, there ...

The next great global currency: TIE asked some of the world's key experts: "ten years from now, what will be the next great global currency?".(Discussion)

Mar 22, 2008 ... [ILLUSTRATION OMITTED] The Dollar [ILLUSTRATION OMITTED] The dollar will reemerge. DAVID C. MULFORD U.S. Ambassador to India and former Undersecretary for International Affairs, U.S. Treasury What goes around ...

The next President and the dollar.

Mar 22, 2008; Adams, Timothy D. ... [ILLUSTRATION OMITTED] I. A Republican Perspective Former Treasury Secretary Paul O'Neill remarked early in his tenure that he would march a brass band through Yankee Stadium if there was change in support for the "strong dollar" policy. My advice to the next ...

Will the dollar go the way of the pound? An important economic historian sets the parameters.

Mar 22, 2008; James, Harold ... Since the Second World War, the U.S. dollar has been the world s hegemonic currency. It took over that role from the British pound, and it is not surprising that the story of the pound often looks like a memento mori, the skull that medieval rulers placed before them in order to remind ...

The oil-dollar link: the Fed, hedge funds, and why oil could hit $150 a barrel.

Mar 22, 2008; Verleger, Philip K., Jr. ... The relationship between the dollar's exchange rate and oil prices has been debated now for decades. Oil-exporting countries justified their first round of price hikes to $10 per barrel in late 1973 by blaming global inflation and the falling dollar. Oil-exporting countries again blamed ...

Goodbye to the dollar? But timing is everything.

Mar 22, 2008; Rogoff, Kenneth ... As the world's financial leaders meet in Washington this April at the World Bank-International Monetary Fund annual meeting, perhaps they should be glad there is no clear alternative to the dollar as the global currency standard. If the euro were fully ready for prime time, we might well ...

The dollar problem: time for East Asia to expand aggregate demand.

Mar 22, 2008; McKinnon, Ronald I. ... The sustainability of the huge U.S. current account deficit depends on the continuance of the world dollar standard. If the United States as center country maintains a stable price level, countries with trade surpluses are loathe to let their currencies appreciate against the dollar for ...

Who is responsible for emerging market inflation improvements?(A SYMPOSIUM OF VIEWS)

Mar 22, 2008 ... One of the pleasant surprises of recent years has been the decline in emerging market inflation. Many if not most emerging market governments during this period tied their currencies in one form or another to the U.S. dollar. Here's the issue: Did emerging markets achieve success on the ...

Are markets rational? an interview with Roman Frydman, whose book with Michael D. Goldberg, Imperfect Knowledge Economics: Exchange Rates and Risk, was recently published by Princeton University Press.(Interview)

Mar 22, 2008 ... [ILLUSTRATION OMITTED] TIE: Your book leads an assault against the rational expectations school of economics. What is wrong with rational expectations? Frydman: To put it simply, despite its name, Rational Expectations Hypothesis (REH) has nothing to do with rational ...

In praise of foreign investment: best practices for the sovereign wealth funds.

Mar 22, 2008; Kimmitt, Robert M. ... International investment in the United States fuels the U.S. economy by creating well-paid jobs, importing new technology and business methods, and providing healthy competition that fosters innovation, productivity gains, lower prices, and greater variety for consumers. President Bush ...

Purchasing power of the U.S. dollar and renminbi: move over, burgernomics. Here's a real shopping basket.

Mar 22, 2008; Zhang, Zhiqiang ... The United States and China are global economic leaders, together accounting for over 40 percent of total global economic growth in the past five years, and each is an important market for the other. Moreover, the Chinese currency, the renminbi, is in the process of appreciation ....

On the dollar as a reserve currency.(Just the Facts: TIE's Executive News Service: THE DOLLAR ISSUE)(Brief article)

Mar 22, 2008; Rees, Matthew ... "The dollar is involved in 86 percent of the $3.2 trillion in daily currency transactions around the world, often as a middle step in exchanges between two other currencies, according to the Bank for International Settlements. While that is down from 90 percent in 2001, no other currency ...