Thursday, December 12, 2019

Like this chart

Dollar price of oil is determined by domestic demand, and varies inversely to dollar value.

Ex post, the only true forward currency trade would be to trade coherently with oil deals.  But the oil traders have that inside arbitrage, currency traders have no forward market here. Redneck U econ department has a motto, there is a micro for every macro.

Someone else noticed this in a real econ research paper, not my discovery.

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