What, then, is the meaning of the expected change in the exchange rate, the term on the right side of the = sign? The Greek euro cannot depreciate against the German euro. In this case, we are measuring the default risk premium of the various countries. Continue Reading →
Why are U.S. interest rates higher than many other countries? Continue Reading →
Hey, Wall Street Journal writers: who has to pay those Treasury notes? That’s right, the U.S. government. Arguing that investors are buying those securities because they expect the U.S. government to default is, well, stupid. Continue Reading →
An April 4 joint press release by the Federal Reserve Bank of Chicago and Visa, Inc. trumpeted the main points made by speakers at the National Literacy Summit. Earlier … President Obama announced that April was National Financial Literacy Month. My irony meter exploded. Continue Reading →