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March 03, 2006


angry economist

If people are buying more commodities, do they lower their cash reserves doing so, or is the demand for the dollar reduced?

I am thinking that there might be some kind of real price adjustment here rather than stimulation of industrial production.

One might think that the opposite is true to your argument - a strong dollar might raise industrial production in asia, as the US would be sucking in imports. However, since the dollar is a global currency, its not as straightforward as this.

Robert Schwartz

How do commodity prices expressed in Euros, Sterling or Yen compare to dollar commodity prices?


There's something wrong with one of your axis, as they both read positively.

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