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Jan 11

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How does China control the exchange rate of its currency?

This installment’s “guest vetter” is Martin Neil Baily, now with the Brookings Institution. He was chairman of President Bill Clinton’s Council of Economic Advisors and is a certified VKP (very knowledgeable person). If you…

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Jan 10

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Do you have any information on white collar jobs such as computer programmers being outsourced?

This installment’s “guest vetter” is Martin Neil Baily, now with the Brookings Institution. He was chairman of President Bill Clinton’s Council of Economic Advisors and is a certified VKP (very knowledgeable person). If you…

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Jan 09

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I think Congress needs tighter control over the credit card industry.

As this ‘bQandA evolves, I’ve taken to asking real economists (i.e., ones with Ph.D.s) to read both your questions and my answers, and comment on any or all of them. This installment’s “guest vetter” is Martin Neil Baily, now with…

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Jan 02

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Is there is a chance of rejuvenation of the American textile industry, or is it too late and gone forever to China, Korea, India and Pakistan?

Question/Comment: I felt so encouraged by talk of Rust Belt life improving and of the death of U.S. manufacturing being greatly exaggerated! I am a textile designer and I wonder if you feel there is a chance of any such…

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Jan 02

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When the U.S. enters into free-trade agreements, are there any rules prohibiting manipulation of foreign exchange rates?

Question/Comment: When the U.S. enters into free-trade agreements, are there any rules prohibiting manipulation of foreign exchange rates? I thought the purpose of floating rates set by the market was to adjust for imbalances in trade. Obviously, that is not…

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Dec 20

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My understanding is that it takes .75 gallons of fuel to make one gallon of ethanol. If this is true, why is this fuel source so widely acclaimed as a great idea?

Question/Comment: There are two issues I’d like to see you tackle that I have not seen anyone in the media deal with. The first has to do with the sensibility of ethanol as a renewable fuel source. My understanding is…

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Dec 20

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Could you please explain the long-term decline of the dollar and predict the long-term implications of this trend?

Question/Comment: Please explain the long-term decline of the dollar and predict the long-term implications of this trend. As an aside, you are a great reporter. You present complicated economic issues in an intelligent and understandable manner. I always perk up…

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Dec 14

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How is the Fed to be blamed if financial institutions are reckless and greedy during periods of low interest rates?

Question/Comment: Many commentators have blamed the Fed for the mortgage mess. How is the Fed to be blamed if financial institutions are reckless and greedy during periods of low interest rates? Paul Solman: You’re cheating, Lloyd. This is two e-mails…

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Dec 14

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It is often said that tax cuts help the economy because the taxpayer spends the money. I do not see how that works.

Question/Comment: It is often said that tax cuts help the economy because the taxpayer spends the money. I do not see how that works. After all, the government spends money, too. So what does it matter who spends the money?…

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Dec 14

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Once companies securitize an asset and remove it from the books, are there provisions by which a company can obtain (purchase back) the asset from the special purpose entity?

Question/Comment: Once companies securitize an asset and remove it from the books, are there provisions by which a company can obtain (purchase back) the asset from the special purpose entity? Since the market for collateralized debt obligations (…

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