Ed Dolan's Econ Blog

Roubini Topic Archive: Markets

  • Why Olive Oil, Good for the Body, is Becoming Bad for the Pocketbook

    It seems there almost nothing bad about olive oil. It is delicious, of course, and if you are a connoisseur, you can get as much pleasure from a fine bottle of olive oil as from a premium Brunello di Montalcino. A  high content of monosaturated fats makes olive oil among the most heart-healthy of all […]

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  • The Myth of Affordable Energy — Interview with Ed Dolan

    Posted by James Stafford: We were fortunate enough to speak with the well known economist Ed Dolan on various energy and economic issues. In the interview Ed talks about the following: • Why cheap energy is not vital to economic growth • Why high oil prices aren’t necessarily a bad thing • Why the U.S. […]

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  • Is a 56.2 MPG Fuel Economy Standard Really a Good Idea?

    According to news reports, the Obama administration is talking to automakers about raising the Corporate Average Fuel Economy standard for passenger cars to 56.2 miles per gallon by 2025, more than double the  27.5 MPG in force for the 20 years up to 2010. Economists, even those like myself who favor policies to reduce fuel […]

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  • Move Over Ethanol, Market Forces Favor CNG as a Gasoline Replacement

    Ethanol is finally getting the bad press (1) (2) it richly deserves. Cracks are even beginning to appear in its once-solid support on Capitol Hill. In April, the Senate Environment and Public Works Committee plans to hold hearings that are expected to skewer ethanol. The Committee is led by Democratic Chair Barbara Boxer and ranking Republican James Inhofe, both committed foes of burning food to run our cars.

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  • How a Price-Smoothing Oil Tax Could Help Make This the Last Oil Price Crisis

    It must be Groundhog Day. Events in Libya have pushed world oil prices over $100 a barrel yet again. Retail gasoline prices, usually low this time of year, are at an all-time seasonal high. Are we in for another round of the same-old, same-old? A replay of Jimmy Carter pledging, “Never Again!” and then doing nothing? Or is there some way we can make this the very last oil price shock?

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  • The Hidden Pitfalls of Increasing U.S. Dependence on Canadian Oil Sands

    Canada is the biggest supplier of oil imports to the United States. Increasingly, those imports come from its vast reserves of oil sands. Is the growing U.S. dependence on Canadian oil sands a win-win deal for both countries, crucial for U.S. energy security, and a source of jobs and economic growth, as American Petroleum Institute President Jack Gerard claims? Is the development of Canadian oil sands “the most destructive project on earth”, as a Canadian environmental report calls it? What pitfalls for policy makers and investors lie hidden in the heated rhetoric coming from both sides in the oil sands debate?

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  • U.S. Ethanol Subsidies: A Bad Policy that Refuses to Die

    U.S corn farmers and ethanol distillers are among those celebrating passage of last week’s tax bill. A little-noticed provision of the law extends ethanol tax credits ($.45 per gallon, plus a bonus for small producers) and tariffs on ethanol imports ($.54 per gallon), previously set to expire at the end of 2010. Should the rest of us also celebrate? I think not.

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  • How China’s Inflation Policy Will Shape the Yuan-Dollar Exchange Rate

    By freezing its exchange rate and pulling out all the stops on fiscal and monetary stimulus, China got through the global recession with only a mild slowdown in GDP growth. Now it is facing the inflationary consequences. Consumer price inflation, after rising steadily all year, hit a 4.4% annual rate in October, approaching the government’s red line. How will China choose to deal with the inflation threat? The answer is important both for China and its trading partners, because anti-inflation policy will determine what happens to the exchange rate of the yuan over the coming months.

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