Roubini on the Forex Market | NOURIEL ROUBINI BLOG

Thursday, May 6, 2010

Roubini on the Forex Market

Roubini on the Forex Market

"The currency markets are really very unpredictable. The truth is that America, Europe and Japan are all three in a recession, then logically the three currencies should go down, which is clearly impossible. The real game is on rate differentials, the so-called carry trades, and then on speculation that entails. In recent months there had been a rally of the dollar against the euro, which if we were unreasonable because America was worse than Europe. Then the euro has recovered just because America was spreading the brand of "zero interest rate". But I think the dollar will soon return to reinforce the strong demand for assets denominated in dollars caused by the issuance of U.S. securities to finance the many planned interventions. Unless Europe does not respond with massive emissions of Eurobonds. Then there is Japan, which has been in deep crisis for much longer than the West: Well, the yen was paradoxically strong for months against the dollar, but now I think that even here the situation is in better balance. You see how complicated it is ? " Nouriel Roubini interviewed by Arianna Editrice

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Nouriel Roubini, (born March 29, 1958, Istanbul, Turkey), Turkish-born American economist and educator who was best known for predicting the 2007–08 subprime mortgage crisis in the United States and the subsequent global financial crisis.

Born to Iranian Jewish parents, Roubini moved with his family to Iran and Israel before they settled in Italy in 1962. After a year at Hebrew University of Jerusalem, he studied economics at Bocconi University in Milan (B.A., 1982) and Harvard University (Ph.D., 1988), where he specialized in macroeconomics and international economics. He joined the economics faculty at Yale University in 1988 and taught there until 1995, when he moved to New York University. He also served as a visiting scholar to the International Monetary Fund (IMF), was a research associate with the National Bureau of Economic Research (NBER), held single-year terms on the White House Council of Economic Advisers (1998–99) and at the U.S. Department of the Treasury (1999–2000), and cofounded (2004) the consulting firm Roubini Global Economics. Roubini spent much of his early career studying countries that experienced extreme economic failures, such as Mexico (in 1994), Thailand and other countries associated with the 1997 Asian financial crisis, Russia (1998), and Argentina (2000). He determined that each shared one common element: a massive current account deficit.(www.britannica.com)

Nouriel Roubini is the Chairman and CEO of Roubini Macro Associates, LLC, his own global macroeconomic consultancy firm. He is also a professor of economics at New York University’s Stern School of Business. Dr. Roubini has extensive policy experience as well as broad academic credentials. From 1998 to 2000, he served as the senior economist for international affairs on the White House Council of Economic Advisors and then the senior advisor to the undersecretary for international affairs at the U.S. Treasury Department, helping to resolve the Asian and global financial crises, among other issues. The International Monetary Fund, the World Bank and numerous other prominent public and private institutions have drawn upon his consulting expertise.