We looked yesterday at the impact of fiscal policy on current account deficits and found a small but modest relationship. Last week Kash Mansouri took a look at the relationship between housing prices and the current account deficit, finding the above for the United States. Again, a relationship. And from the vantage point of 2005 you might have thought it was an extremely strong relationship but more recently it looks hazy. In an international context you can find a strong correlation, but you need to ignore China to make it show up.
A return to old-school curbs on capital inflows keeps being the dog that doesn't park in the developed world policy debate.
TODAY IN SLATE
Justice Ginsburg’s Crucial Dissent in the Texas Voter ID Case
The Jarring Experience of Watching White Americans Speak Frankly About Race
Here’s Just How Far a Southern Woman May Have to Drive to Get an Abortion
The Most Ingenious Teaching Device Ever Invented
Marvel’s Civil War Is a Far-Right Paranoid Fantasy
It’s also a mess. Can the movies do better?
Sprawl, Decadence, and Environmental Ruin in Nevada
An All-Female Mission to Mars
As a NASA guinea pig, I verified that women would be cheaper to launch than men.