Should the United States hold foreign currency reserves?
An argument that for countries with well-developed money markets and flexible exchange rates, there is little to be gained from holding a vast foreign exchange portfolio and intervening in the world's currency markets.
A basic analysis of the new protectionism
A discussion of the costs associated with trade restraint, focusing on devices currently used or recently proposed in the United States.
Implications of a tariff on oil imports
An examination of the possible positive and negative effects that could result from a hypothetical $10 per barrel increase in tariffs on crude oil and refined oil products.
A new effective exchange rate index for the dollar and its implications for U.S. merchandise trade
An introduction to a new exchange-rate index to measure the foreign-exchange value of the dollar. The authors develop a model of U.S. merchandise trade, featuring the new index.
Three common misperceptions about foreign direct investment
A repudiation of three common beliefs about foreign direct investment in the United States: that it is the result of the current-account deficit, that it is initiated primarily by the Japanese, and that it will result in the loss of U.S. economic independence.
Assessing and resisting inflation
An examination of the detrimental effects of inflation and a recommendation that policymakers should immediately resist a further acceleration of inflation, rather than wait for more signals of its future course.
Foreign capital inflows: another Trojan horse?
An analysis of the role of foreign investment in U.S. resource allocation, finding that the large influx of foreign capital in the 1980s has been used predominantly to fund domestic investment and consumer investment spending.
Merchandise trade and the outlook for 1988
An explanation of why current forecasts that call for vast improvements in the U.S. trade balance and real net exports in 1988 may be too optimistic.
U.S. dependence on foreign saving
An analysis of the determination of foreign investment in U.S. financial markets and suggestions for reducing dependence on foreign savings inflow.
The decline in U.S. agricultural exports
An analysis of factors that produced a 40 percent drop in U.S. agricultural exports between 1981 and 1986, with a discussion of the potential effects of dollar depreciation and the 1985 Food Security Act.