2007 March

The Debate Continues

Desmond Lachman’s latest response: Dear Mr. Calhoun, Thank you for your e-mail. You raise several interesting questions, which I will try to answer in turn and which you should feel free to post if you choose: Government Intervention: My idea is certainly not to have government intervention in currency markets in the normal sense of .. read more

On March 21st, 2007, posted in: Economy by

Lachman’s Response

A couple of days ago, I posted a response to an article by AEI Scholar Desmond Lachman. Mr. Lachman, who I’m sure is very busy with scholarly things at AEI, was kind enough to respond. Here is his initial response and my comments: Dear Mr. Calhoun, Thanks for your e-mail and for sharing with me .. read more

On March 21st, 2007, posted in: Economy by

A Cry for Intervention

In the article linked above, AEI scholar Desmond Lachman bemoans the lack of government control over the currency market: Even more troubling than today’s growing payment imbalances is the fact that, the IMF notwithstanding, there appear to be no rules as to what countries might do with their exchange rates. Some countries seem free to .. read more

On March 18th, 2007, posted in: Economy by

Trade Deficit Truths

I have commented many times in the past about the trade deficit. Unlike many others, the trade deficit doesn’t worry me. The last time the US ran a trade surplus, the economy was in recession. The evidence is overwhelming that free trade benefits those countries that practice it regardless of whether their trade partners are .. read more

On March 17th, 2007, posted in: Economy by