Michael Klein
FLETCHER SCHOOL OF LAW AND DIPLOMACY, TUFTS UNIVERSITY. Professor of International Economic Affairs. Research interests include world capital markets, exchange rate management, and foreign direct investment.

What Information Does the Yield Curve Yield? (UPDATED)

December 6, 2018

The Issue:

Forecasting the twists and turns of the economy is difficult. One set of indicators used to gauge where the economy is headed draws on information from financial markets since the yields paid by financial assets reflect the collective market view of the future state of the economy. An inverted yield ...
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Weak Links in the Chain Migration Argument

February 14, 2018

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The Issue:

The term "chain migration" is currently being used to describe a process in which one legal immigrant can generate many new admissions by sponsoring his or her relatives — each of whom, in turn, leads to even more immigrants. President Donald Trump called for an end ...
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The Decline in the Dollar

June 2, 2017

The Issue:

The dollar got stronger (appreciated) against the currencies of its major trading partners in the immediate wake of the election of President Trump. This reflected the market’s view of the expected effects of policies advocated by Candidate Trump, such as tax cuts, infrastructure spending, and higher ...
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What Do We Learn from Bilateral Trade Deficits?

May 25, 2017

The Issue:

The Trump administration proposes using United States’ trade deficits with its trading partners to gauge whether the trading relationship with that country is “fair.” An executive order signed on March 31 requires officials to produce an “omnibus” report naming U.S. trading partners with “significant” ...
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Leaning on The Fed

April 13, 2017

The Issue:

The Federal Reserve walks a tight balance between maintaining low unemployment and preventing the economy from heating up and unleashing inflation. Its decisions impact groups differently: raising interest rates can be painful for borrowers and businesses seeking to invest and expand; lowering them can ...
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Who Owns Us? Foreign Investment and Trade Deficits

March 13, 2017

The Issue:

Peter Navarro, head of the White House Council on Trade, argues that trade deficits not only reduce America’s economic self-reliance but could also pose a threat to national security. He warns in an op-ed in the Wall Street Journal that China and other trading partners use proceeds from export sales ...
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