Comments on: Menzie Chinn Asks if the Dollar is Near Bottom (Answer: Maybe Not as Close as Most Think) http://www.nakedcapitalism.com/2007/12/menzie-chinn-asks-if-dollar-is-near.html Sun, 22 Nov 2009 19:08:53 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Moopheus http://www.nakedcapitalism.com/2007/12/menzie-chinn-asks-if-dollar-is-near.html#comment-2372 Moopheus Wed, 12 Dec 2007 20:16:00 +0000 http://www.nakedcapitalism.com/2007/12/menzie-chinn-asks-if-the-dollar-is-near-bottom-answer-maybe-not-as-close-as-most-think/#comment-2372 How much different would this chart look if China let the Yuan float? Th dollar has sunk against the euro but not against the yuan or much against the yen; surely that skews the picture somewhat. How much different would this chart look if China let the Yuan float? Th dollar has sunk against the euro but not against the yuan or much against the yen; surely that skews the picture somewhat.

]]> By: Yves Smith http://www.nakedcapitalism.com/2007/12/menzie-chinn-asks-if-dollar-is-near.html#comment-2356 Yves Smith Wed, 12 Dec 2007 08:59:00 +0000 http://www.nakedcapitalism.com/2007/12/menzie-chinn-asks-if-the-dollar-is-near-bottom-answer-maybe-not-as-close-as-most-think/#comment-2356 On the top graph, Chinn wants the blue line to go back to negative .01 on the left scale. I agree it's a bit confusing.<br/><br/>I need to go back to the original post on your second question. Chinn provides a lot of links to earlier work in the post. He may have been using different versions of the USD index for different purposes (choosing the one that gave the best results on the trade chart vs. perhaps a more commonly used variant).<br/><br/>Good catch, BTW. On the top graph, Chinn wants the blue line to go back to negative .01 on the left scale. I agree it’s a bit confusing.

I need to go back to the original post on your second question. Chinn provides a lot of links to earlier work in the post. He may have been using different versions of the USD index for different purposes (choosing the one that gave the best results on the trade chart vs. perhaps a more commonly used variant).

Good catch, BTW.

]]> By: Anonymous http://www.nakedcapitalism.com/2007/12/menzie-chinn-asks-if-dollar-is-near.html#comment-2354 Anonymous Wed, 12 Dec 2007 08:11:00 +0000 http://www.nakedcapitalism.com/2007/12/menzie-chinn-asks-if-the-dollar-is-near-bottom-answer-maybe-not-as-close-as-most-think/#comment-2354 "...adjustment required in order to get the net exports ex-oil to GDP ratio to something around 1% of GDP." <br/><br/>Clueless observer wonders, would that mean the red line dips to the -.01 mark on the top graph? <br/><br/>An interesting post but I'm a bit confused. The dollar's real (Fed) value looks stronger than actual in the top graph, but weaker than actual in the lower. “…adjustment required in order to get the net exports ex-oil to GDP ratio to something around 1% of GDP.”

Clueless observer wonders, would that mean the red line dips to the -.01 mark on the top graph?

An interesting post but I’m a bit confused. The dollar’s real (Fed) value looks stronger than actual in the top graph, but weaker than actual in the lower.

]]>