Found 72 article(s) for author 'Jeffrey Frankel'

All Quiet on the Currency Front

All Quiet on the Currency Front. Jeffrey Frankel, June 11, 2013, Opinion. “The term “currency wars” is a catchy way of saying “competitive devaluation.” In the wake of the sharp fall in the value of the yen over the last six months, owing to the monetary component of Japan’s efforts to jump-start its economy, the issue is expected to feature prominently on the agenda at the G-8’s upcoming summit in Northern Ireland. But should it? According to the International Monetary Fund, competitive devaluation occurs when countries are “manipulating exchange rates…to gain an unfair competitive advantage over other members… Link verified March 28, 2014

Tags: ,

Dispatches from the Currency Wars

Dispatches from the Currency Wars. Jeffrey Frankel, June 11, 2013, Opinion. “The value of the yen has fallen sharply since November, owing to the monetary component of Japan’s efforts to jump-start its economy (“Abenomics”). Thus the issue of currency wars is expected to feature on the agenda at the G-8’s upcoming summit in Enniskillen, UK, June 17-18. The phrase “currency wars” is catchy. But does it have genuine analytical content? It is another way of saying “competitive devaluation.” To use the language of IMF Article IV(1) iii, it is what happens when countries are “manipulating exchange rates…to gain an unfair competitive advantage over other members…”  Link verified April 4, 2014

Tags: , ,

The Flawed Origins of Expansionary Austerity

The Flawed Origins of Expansionary Austerity. Jeffrey Frankel, May 20, 2013, Opinion. “Several of my Harvard University colleagues have recently been casualties in the crossfire between fiscal “austerians” and fiscal stimulators. The economists Carmen Reinhart and Kenneth Rogoff have received an astounding amount of press attention since it was discovered that they made a spreadsheet error in a 2010 paper that examined the statistical relationship between debt and growth. They quickly conceded their error. Soon after, the historian Niall Ferguson – also at Harvard – received much flack when, asked to comment on Keynes’…” Link verified March 28, 2014

Tags: ,

On Whose Research is the Case for Austerity Mistakenly Based?

On Whose Research is the Case for Austerity Mistakenly Based?. Jeffrey Frankel, May 20, 2013, Opinion. “Several of my colleagues on the Harvard Faculty have recently been casualties in the cross-fire between fiscal austerians and stimulators. Economists Carmen Reinhart and Ken Rogoff have received an unbelievable amount of press attention (although they were already famous – or, more precisely, because they were already famous), ever since they were discovered by three researchers at the University of Massachusetts Amherst to have made a spreadsheet error in the first of two papers that examined the statistical relationship between debt and growth. They quickly conceded their error…” Link verified April 4, 2014

Tags: ,

Nominal GDP Targeting is Left, Right?

Nominal GDP Targeting is Left, Right? Jeffrey Frankel, May 2, 2013, Opinion. “The recent surge in interest in Nominal GDP Targeting, as an alternative to money targeting or inflation targeting if the central bank is to commit to a nominal target of some sort, has prompted some pushback. This is not surprising. But one of the responses is most peculiar. This is the allegation that the surge comes from liberals opportunistically adopting an idea that was originally proposed by conservatives, and that they will not stick with this “fad” in the longer run because it is only designed to fit current circumstances of high unemployment and low output. Remarkably, every component of this argument is wrong…” Link verified April 4, 2014

Tags: ,

The Future of the Currency Union

The Future of the Currency Union. Jeffrey Frankel, May 2013, Paper. “This note attempts a concise yet comprehensive overview of the crisis still facing the eurozone, in the areas of competitiveness, fiscal policy, and banking. The euro’s founding documents enshrined such principles as fiscal constraints, the “no bailout clause,” and assignment to the ECB of the goal of low inflation to the exclusion of monetizing national debts. Those principles have been permanently compromised. On the one hand, German taxpayers cannot be expected to agree to bailouts of profligate euro…” Link verified March 28, 2014

Tags: , , ,

Currency Wars

Currency Wars. Jeffrey Frankel, March 18, 2013, Opinion. “To the extent that the catchy phrase “Currency wars” has genuine analytical content, it is another way of saying “competitive devaluation” (or at least competitive depreciation), a kind of beggar-thy-neighbor policy (to use the language of the 1930s), or “manipulating exchange rates…to gain an unfair competitive advantage over other members…”  (to quote from IMF Article IV(1)iii.)…”  Link

Tags: , , , ,

The Economist’s Stone

The Economist’s Stone. Jeffrey Frankel, March 13, 2013, Opinion. “This year marks the 100th anniversaries of two distinct institutional innovations in American economic policy: the introduction of the federal income tax and the establishment of the Federal Reserve. They are worth commemorating, if only because we are at risk of forgetting what we have learned since then. Initially, neither the income tax nor the Fed was associated with the explicit concepts of fiscal and monetary policy. Indeed, it wasn’t until after the experience of the 1930’s that they came to be viewed as potential instruments for macroeconomic management…” Link verified March 28, 2014

Tags: , , ,

McKinnon’s Claim that RMB-$ Appreciation Would Not Reduce Trade Imbalances

McKinnon’s Claim that RMB-$ Appreciation Would Not Reduce Trade Imbalances. Jeffrey Frankel, March 10, 2013, Opinion. “The International Economy magazine (Winter 2013) asks 16 authorities, “Can Changes in Exchange Rate Valuations Affect Trade Imbalances?” It is referring to the claim in a recent book by Stanford economist Ron McKinnon that pressure on China to let the renminbi appreciate against the dollar is fundamentally misconceived because such a movement in the exchange rate would not reduce China’s trade surplus nor American’s trade deficit. This is part of an old debate that pre-dates the rise of the China trade problem…” Link verified April 4, 2014

Tags: , ,