Keyword: dollar

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.

Keywords: appreciation, budget deficits, central banks, dollar, foreign exchange reserves, free money, IOU, Reserve currency, trade deficits, yuan

Hedging Inflation with Prostitution (1/30/2015)

Prostitution has proven to be an effective hedge against high inflation induced by subsidies and price control in Venezuela.

Keywords: Bolivar, currency trader, devaluation, dollar, exchange rate, inflation, inflation hedge, price control, prostitutes, Smuggling, subsidized gas, Venezuela

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.

Keywords: current account deficit, current account surplus, dollar, foreign exchange, revaluation, RMB, trade deficit, trade surplus, yuan

Trade Surplus Trap (6/18/2010)

Countries heavily dependent on exporting manufactured goods must deny their own citizens higher standard of living to maintain their trade surplus in an era of global wage arbitrage.

Keywords: China, dollar, exchange rate, fiat money, Germany, Japan, outsourcing, part-time workers, sterilize, temporary workers, trade surplus, Wage arbitrage, wages, yuan