Thirty years ago, many economists argued that inflation was a kind of minor inconvenience and that the cost … - Martin Feldstein

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Turkey's a valued ally, important ally for NATO, not the least because of its strategic geographic location, bordering Syria and Iraq and close to Russia and the Black Sea.

Martin Feldstein

Thirty years ago, many economists argued that inflation was a kind of minor inconvenience and that the cost of reducing inflation was too high a price to pay. No one would make those arguments today.

Cost, High, Minor, Pay, Years

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Although economists have studied the sensitivity of import and export volumes to changes in the exchange rate, there is still much uncertainty about just how much the dollar must change to bring about any given reduction in our trade deficit.

Bring, Deficit, Dollars, Exchange, Reduction, Volume

Increased government spending can provide a temporary stimulus to demand and output but in the longer run higher levels of government spending crowd out private investment or require higher taxes that weaken growth by reducing incentives to save, invest, innovate, and work.

Demand, Government, Growth, Running, Stimulus, Work

Unless the trade deficit shrinks, the combination of the trade deficit and the interest and dividend payments to foreigners will grow ever more rapidly.

Combination, Dividend, Interest, Payment, Trade

But then in April of 1985 the dollar began a sharp decline. The dollar's trade weighted value fell 23 percent in just 12 months and by a total of 37 percent by the beginning of 1988.

Aggravation, Dollar, Dollars, Fell, Months, Value

A second reason why science cannot replace judgement is the behavior of financial markets.

Behavior, Financial, Judgement, Reason, Reason Why, Science