In 1971, President Nixon imposed national price controls and took the United States off the gold standard, an extreme measure intended to end an ongoing currency war that had destroyed faith in the U.S. dollar. Today we are engaged in a new currency war, and this time the consequences will be far worse than those that confronted Nixon.
Currency wars are one of the most destructive and feared outcomes in international economics. At best, they offer the sorry spectacle of countries’ stealing growth from their trading partners. At worst, they degenerate into sequential bouts of inflation, recession, retaliation, and sometimes actual violence. Left unchecked, the next currency war could lead to a crisis worse than the panic of 2008.
Currency wars have happened before-twice in the last century alone-and they always end badly. Time and again, paper currencies have collapsed, assets have been frozen, gold has been confiscated, and capital controls have been imposed. And the next crash is overdue. Recent headlines about the debasement of the dollar, bailouts in Greece and Ireland, and Chinese currency manipulation are all indicators of the growing conflict.
As James Rickards argues in Currency Wars, this is more than just a concern for economists and investors. The United States is facing serious threats to its national security, from clandestine gold purchases by China to the hidden agendas of sovereign wealth funds. Greater than any single threat is the very real danger of the collapse of the dollar itself.
Baffling to many observers is the rank failure of economists to foresee or prevent the economic catastrophes of recent years. Not only have their theories failed to prevent calamity, they are making the currency wars worse. The U. S. Federal Reserve has engaged in the greatest gamble in the history of finance, a sustained effort to stimulate the economy by printing money on a trillion-dollar scale. Its solutions present hidden new dangers while resolving none of the current dilemmas.
While the outcome of the new currency war is not yet certain, some version of the worst-case scenario is almost inevitable if U.S. and world economic leaders fail to learn from the mistakes of their predecessors. Rickards untangles the web of failed paradigms, wishful thinking, and arrogance driving current public policy and points the way toward a more informed and effective course of action.
Plump, grumpy, slumped on the couch, and going nowhere fast at age 16, Phil Gaimon began riding a bicycle with the grand ambition of shedding a few pounds before going off to college. He soon fell into racing and discovered he was a natural, riding his way into a pro contract after just one season despite utter ignorance of a century of cycling etiquette. Now, in his book Pro Cycling on $10 a Day, Phil brings the full powers of his wit to tell his story.
Presented here as a guide—and a warning—to aspiring racers who dream of joining the professional racing circus, Phil’s adventures in road rash serve as a hilarious and cautionary tale of frustrating team directors and broken promises. Phil’s education in the ways of the peloton, his discouraging negotiations for a better contract, his endless miles crisscrossing America in pursuit of race wins, and his conviction that somewhere just around the corner lies the ticket to the big time fuel this tale of hope and ambition from one of cycling’s best story-tellers.
Pro Cycling on $10 a Day chronicles the racer’s daily lot of blood-soaked bandages, sleazy motels, cheap food, and overflowing toilets. But it also celebrates the true beauty of the sport and the worth of the journey, proving in the end that even among the narrow ranks of world-class professional cycling, there will always be room for a hard-working outsider.
How should we evaluate the forecasting power of models? What are appropriate loss functions for major market participants? Is the exchange rate the only means of adjustment? Handbook of Exchange Rates answers these questions and many more, equipping readers with the relevant concepts and policies for working in today’s international economic climate.
Featuring contributions written by leading specialists from the global financial arena, this handbook provides a collection of original ideas on foreign exchange (FX) rates in four succinct sections:
• Overview introduces the history of the FX market and exchange rate regimes, discussing key instruments in the trading environment as well as macro and micro approaches to FX determination.
• Exchange Rate Models and Methods focuses on forecasting exchange rates, featuring methodological contributions on the statistical methods for evaluating forecast performance, parity relationships, fair value models, and flow–based models.
• FX Markets and Products outlines active currency management, currency hedging, hedge accounting; high frequency and algorithmic trading in FX; and FX strategy-based products.
• FX Markets and Policy explores the current policies in place in global markets and presents a framework for analyzing financial crises.
Throughout the book, topics are explored in-depth alongside their founding principles. Each chapter uses real-world examples from the financial industry and concludes with a summary that outlines key points and concepts.
Handbook of Exchange Rates is an essential reference for fund managers and investors as well as practitioners and researchers working in finance, banking, business, and econometrics. The book also serves as a valuable supplement for courses on economics, business, and international finance at the upper-undergraduate and graduate levels.
KEY FEATURES • Emotional Intelligence – For the first time ever, FIFA 15 models the emotions of all 22 players on the pitch, giving fans a chance to experience first-hand the attitudes and personalities of the world’s best soccer players during a match. • Dynamic Match Presentation – Match Day will feel more dynamic and alive than ever before – immersing you in the match action and never taking you out of the moment. With region specific behaviors, crowds will now be distinguished by cheers and chants designated to their club, league, country, or continent. • Correct Contacts – Physically Correct Contacts revolutionizes the way the soccer interacts with the players and their environment. Every dribble, touch, pass, shot, and deflection moves corresponding to the spin of the ball in relation to the position of the body part or object that it connects with – this gives the soccer accurate spin, curl, and movement, as well as varied trajectories. • Man-to-Man Battles – Dispossessing your opponent in FIFA 15 is more rewarding and physical than ever before. Players use Full-Body Defending to win possession and keep it.