Found 74 article(s) for author 'Jeffrey Frankel'

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: , ,

Why politics fails to address market failures

Why politics fails to address market failures. Jeffrey Frankel, February 17, 2013, Opinion. “Markets can fail. But, as has been demonstrated in areas like air pollution, traffic congestion, spectrum allocation, and tobacco consumption, market mechanisms are often the best way for governments to address such failures. So why are such mechanisms now in retreat? Consider markets for emissions allowances, in which firms that can cheaply cut air pollution trade with those that cannot. A decade ago, the idea that such markets could achieve desired environmental goals at relatively low cost was widely recognized and implemented…” Link verified March 28, 2014

Tags: ,

The Battle of the Bond Benchmarks

The Battle of the Bond Benchmarks. Jeffrey Frankel, February 11, 2013, Opinion. “Some prominent institutional bond investors are shifting their focus from traditional benchmark indices, which weight countries’ debt issues by market capitalization, toward GDP-weighted indices. PIMCO, one of the world’s largest fixed-income investment firms, and the Government Pension Fund of Norway, one of the largest sovereign wealth funds, have both recently made moves in this direction. But there is a risk that some investors could lose sight of the purposes of a benchmark index. The benchmark exists to represent the views of the median investor…” Link verified March 28, 2014

Tags: ,

Should Bond Benchmarks Shift from Traditional to GDP-Weighted Indices?

Should Bond Benchmarks Shift from Traditional to GDP-Weighted Indices?. Jeffrey Frankel, February 11, 2013, Opinion. “Some prominent institutional bond investors are shifting their focus away from traditional benchmark indices that weight countries’ debt issues by market capitalization, toward GDP-weighted indices. PIMCO (Pacific Investment Management Company, LLC, the world’s largest fixed-income investment firm) and the Government Pension Fund of Norway (one of the world’s largest Sovereign Wealth Funds), have both recently made moves in this direction. There is a danger that some investors will lose sight of the purpose of a benchmark index…” Link verified April 4, 2014

Tags: ,

Monetary Alchemy, Fiscal Science

Monetary Alchemy, Fiscal Science. Jeffrey Frankel, January 26, 2013, Opinion. “The year 2013 marks the 100th anniversaries of two separate major institutional innovations in American economic policy: the Constitutional Amendment enacting the federal income tax, ratified on February 3, 1913, and the law establishing the Federal Reserve, passed in December 1913. It took some time before the two new institutions became associated with the explicit concepts of fiscal policy and monetary policy, respectively. It wasn’t until after the experience of the 1930s that they came to be viewed as potential instruments for managing the macro-economy. John Maynard Keynes, of course…” Link verified April 4, 2014

Tags: , ,

Will Europe’s Fiscal Compact Work?

Will Europe’s Fiscal Compact Work? Jeffrey Frankel, January 18, 2013, Opinion. “At the start of 2013, the eurozone’s “fiscal compact” entered into force, owing to its ratification on December 21 by a 12th country, Finland, a year after German Chancellor Angela Merkel prodded eurozone leaders into agreement. The compact – technically called the Treaty on Stability, Coordination, and Governance in the Economic and Monetary Union – requires member countries to introduce laws limiting their structural government budget deficits to less than 0.5 % of GDP (or less than 1% of GDP if their debt/GDP ratio is “significantly below 60%”)…” Link verified March 28, 2014

Tags: ,

Can the Euro’s Fiscal Compact Cut Deficit Bias?

Can the Euro’s Fiscal Compact Cut Deficit Bias? Jeffrey Frankel, January 18, 2013, Opinion. “Europe’s fiscal compact went into effect January 1, as a result of its ratification December 21 by the 12th country, Finland, a year after German Chancellor Angela Merkel prodded eurozone leaders into agreement. The compact (technically called the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union) requires member countries to introduce laws limiting their structural government budget deficits to less than ½ % of GDP. A limit on the “structural deficit” means that a country can run a deficit above the limit to the extent — and only to the extent — …Link verified April 4, 2014

Tags: , , ,

Debt Ceilings, Bombs, Cliff and the Trillion Dollar Coin

Debt Ceilings, Bombs, Cliff and the Trillion Dollar Coin. Jeffrey Frankel, January 16, 2013, Opinion. “Needless to say, the US has a long-term debt problem. The problem is long-term both in the sense that it pertains to the next several decades rather than to this year. (Indeed, the deficit/GDP ratio has been falling since 2009, despite the weakness of the economy.) The problem is also long-term in the sense that we have known about it for a long time; it was clear in 1991 and should still have been clear in 2001. It should be almost as needless-to-say that the approaching debt ceiling bomb is not helpful in solving our fiscal situation, any more so than were previous standoffs…” Link verified April 3, 2014

Tags: , ,

A Lesson from the South for Fiscal Policy in the US and Other Advanced Countries.

A Lesson from the South for Fiscal Policy in the US and Other Advanced Countries. Jeffrey Frankel, 2013, Book or Book Chapter. “What can America learn from countries as faraway and diverse as Bhutan, Chile, Denmark, Nigeria and South Korea? Quite a lot, as it turns out. At a time of fundamental change in global power, the country that undisputedly ruled the latter half of the 20th century is no longer firmly in the lead. In the search for new ideas to redevelop America, co-editors Joe Colombano and Aniket Shah point to what has happened outside the borders of the United States…” May require purchase or user account. Link verified June 19, 2014

Tags: ,