Tag Archives: dollar

The Falling Dollar

Larry White writes:

Note that, using the year-over-year CPI as a measure of current inflation, the Fed funds rate is currently negative in real terms: 3.0 – 4.1 = -1.1. Not surprisingly foreign investors are dumping short-term dollar assets with the result that, as Forbes headlined, “Dollar slumps to new all-time euro low as Bernanke hints at rate cuts”.

Yeesh! Meanwhile, Barry Ritholtz provides the visual: