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September 25, 2011

The Trillion Dollar War of Choice, and the Constraints on Macro Policy

Or at least $805.6 billion as of the end of September, not including debt service and additional reset costs; around $940 billion including interest payments.

As the US economy faces the prospects of stagnant growth or recession, it is of interest to see why the scope for fiscal policy is so circumscribed -- that is why is the debt level so high given that in the last year of the Clinton Administration, we were paying down debt? Figure 1 depicts part of the answer (other parts, here).

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Posted by Menzie Chinn at 09:20 PM permalink | Comments (65)

January 29, 2011

Geopolitical unrest and world oil markets

Change is on the way in the Arab world, with Egypt the latest focal point. Here I review recent events and their implications for world oil markets.

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Posted by James Hamilton at 02:15 PM permalink | Comments (32)

September 02, 2008

A new dynamic for the Middle East

Maybe it's time to try something new. And maybe it's already starting.

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Posted by James Hamilton at 08:35 PM permalink | Comments (28)

July 05, 2008

Iraq is a success if...

...oil was the objective. Maybe.

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Posted by Menzie Chinn at 07:23 AM permalink | Comments (34)

March 19, 2008

Iraq Burn Rate > $12 billion per month?

That's what's implied by the graphic in today's NYT article, based on CBO data.

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Posted by Menzie Chinn at 12:01 AM permalink | Comments (37)

February 20, 2008

Iraq rationales: WMDs, Fighting Terrorism, Democracy, Military Keynesianism

From FT yesterday:

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Posted by Menzie Chinn at 06:47 PM permalink | Comments (39)

February 19, 2008

$100 a barrel

Crude oil reached a record high on Tuesday, and there's an embarrassing oversupply of theories to explain why.

Continue reading "$100 a barrel"

Posted by James Hamilton at 05:42 PM permalink | Comments (30)

September 21, 2007

If Iraq becomes West Germany

Some people have argued that the occupation of Iraq could evolve into a West Germany type situation. CBO has assessed the costs of this eventuality.

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Posted by Menzie Chinn at 11:00 PM permalink | Comments (16)

September 17, 2007

Economic indicators of success in Iraq

Some economists have been interpreting economic developments as shedding light on the success of the military surge in Iraq. I think one needs to use a bit of caution in drawing conclusions from such evidence.

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Posted by James Hamilton at 06:38 AM permalink | Comments (38)

September 12, 2007

Perspective on the Surge and US Losses

I thought it would behoove us to actually inspect the data and look at the trends (as opposed to listening to Administration officials) associated with operations in the Iraqi theater.

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Posted by Menzie Chinn at 09:23 PM permalink | Comments (18)

July 31, 2007

Costing the Surge, and More...

Given the statements that the U.S. might be "surging the surge", expect an incremental $40 billion to be expended over the next two years.

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Posted by Menzie Chinn at 10:00 AM permalink | Comments (27)

July 18, 2007

Iraq update

Expenditures continue to rise. More appropriations will likely be needed at this pace.

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Posted by Menzie Chinn at 08:40 AM permalink | Comments (31)

April 30, 2007

Four Years after "Mission Accomplished"

I thought that it was proper and fitting to evaluate the state of affairs in Iraq four years after President Bush declared the end of major military combat operations in Iraq.

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Posted by Menzie Chinn at 09:00 PM permalink | Comments (36)

March 25, 2007

Some Implications of "Staying the Course"

The numbers are flying around -- so much so that one cannot be sure of where force levels will be in a few months. However, based upon press reports and data provided by the Brookings Institution's Iraq Index, we can make some educated guesses.

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Posted by Menzie Chinn at 09:48 PM permalink | Comments (16)

February 20, 2007

2+2=3

Or some (more) things in the Budget Proposal don't add up

Suppose the President's plan to escalate troop levels in Iraq succeeds in stabilizating Baghdad. What does that mean for future expenditures in support of the occupation of Iraq? Is the President's $50 billion request for Iraq related expenditures in FY2009 consistent with the plan? This article from GovExec.com provides some hints.

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Posted by Menzie Chinn at 07:45 AM permalink | Comments (1)

February 09, 2007

Is a 12 Step Program Needed for Policymaking in Washington?

From the Wikipedia entry on 12-step programs:

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Posted by Menzie Chinn at 03:40 PM permalink | Comments (8)

January 22, 2007

Army Transformation sacrificed on the altar of ...(a) tax cuts, (b) Iraq, (c) other

Or, "opportunity cost illustrated" redux. From GovExec.com:

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Posted by Menzie Chinn at 08:53 PM permalink | Comments (28)

January 15, 2007

Escalation and Accidental Military Keynesianism

Under plausible assumptions, Fiscal Year '07 expenditures for operations in Iraq will come close to 1 percentage point of GDP. What will be the impact on the U.S. economy?

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Posted by Menzie Chinn at 11:05 AM permalink | Comments (7)

January 10, 2007

The Wartime Economy and Tax Policy

So Shinseki was right.

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Posted by Menzie Chinn at 06:00 PM permalink | Comments (41)

January 04, 2007

President Bush on Economics

On Wednesday, the President writes in a Wall Street Journal op-ed (sub. req.):

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Posted by Menzie Chinn at 09:00 AM permalink | Comments (18)

December 23, 2006

Blood, oil, and ideology

Mark Thoma and Two Angry Bears call attention to this post from Christopher Hayes.

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Posted by James Hamilton at 10:45 AM permalink | Comments (23)

December 22, 2006

Surge or no surge? minimal "burn rates" for operations in Iraq

Where are expenditure rates now? Where might they go?

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Posted by Menzie Chinn at 09:26 AM permalink | Comments (3)

December 18, 2006

Additional thoughts on Iraq

Shivaji Sondhi and Michael Cook, who direct the Project on Oil, Energy and the Middle East at the Princeton Institute of International and Regional Studies, offer these additional thoughts for the cross-blog discussion on Iraq as a follow-up to their original contribution.

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Posted by James Hamilton at 08:55 AM permalink | Comments (8)

December 14, 2006

Blogging colloquium on Iraq

Dave Schuler and his Glittering Eye have called for a cross-blog discussion on options and prospects for Iraq. I'm glad to contribute with some thoughts on the economic situation, and invite you to participate as well, with comments left here or at any of the other participating sites.

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Posted by James Hamilton at 04:10 PM permalink | Comments (13)

November 21, 2006

Guest column from Shivaji Sondhi and Michael Cook

The moment seems to be opportune for some creative ideas about how to handle the situation in Iraq. Econbrowser is pleased today to publish a guest column from Princeton professors Shivaji Sondhi and Michael Cook, who direct the Project on Oil, Energy and the Middle East at the Princeton Institute of International and Regional Studies.

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Posted by James Hamilton at 03:20 PM permalink | Comments (22)

October 31, 2006

"Trends in Iraq" - Updated

This figure updates the data presented in an earlier post on Iraq trends, replacing the projection with actual figures for October.

Continue reading ""Trends in Iraq" - Updated"

Posted by Menzie Chinn at 11:00 AM permalink | Comments (36)

October 22, 2006

Monday, December 18, 2006

At the rate of casualties incurred in October-to-date, cumulative U.S. fatalities in the Iraqi theater of operations will exceed 3000 on this date.

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Posted by Menzie Chinn at 12:12 PM permalink | Comments (19)

October 12, 2006

Trends in Iraq

Casualties, force levels and expenditures

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Posted by Menzie Chinn at 01:32 AM permalink | Comments (28)

September 10, 2006

Ex post versus ex ante benefit-cost analysis: Iraq 2003-

Now that the long-delayed Senate report on pre-Iraq War intelligence has finally put the Republican imprimatur on the well-established fact that the case for Iraqi WMD's had been hyped (as well as the absence of a Iraq-al Qaeda link), we can return our attention to a rational benefit-cost assessment for the invasion and subsequent occupation, ex ante as well as (quasi) ex post.

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Posted by Menzie Chinn at 09:49 AM permalink | Comments (17)

August 23, 2006

Opportunity cost illustrated

On a one year anniversary, a look back to (one of the reasons) why the National Guard's post-Katrina rescue and recovery efforts were hampered.

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Posted by Menzie Chinn at 09:35 AM permalink | Comments (4)

July 20, 2006

(Non) transparency of GWOT expenditures, and an update on Iraq metrics

While the events in Lebanon and Gaza have pushed Iraq off center stage, Iraq and Afghanistan remain the largest fiscal drains on the U.S. Treasury and the military's ability to respond to other strategic challenges. In this light, GAO Comptroller David Walker's testimony on Tuesday [pdf] is both illuminating and depressing. From the Summary:

Continue reading "(Non) transparency of GWOT expenditures, and an update on Iraq metrics"

Posted by Menzie Chinn at 07:55 AM permalink | Comments (18)

June 20, 2006

Some Iraq cost metrics on a one year anniversary

Evaluating the costs one year after Cheney's prediction of "the last throes ...of the insurgency"

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Posted by Menzie Chinn at 07:45 AM permalink | Comments (58)

February 25, 2006

Iraq's electricity challenges

Those who want to see Iraq's democracy fail have targeted electricity production as one of the key strategic objectives of the conflict. Those who want to see Iraq succeed would be wise to do likewise.

Continue reading "Iraq's electricity challenges"

Posted by James Hamilton at 09:32 AM permalink | Comments (7)

February 08, 2006

A proposal for Iraq

Here are some thoughts on how to get the vast oil wealth of Iraq working most quickly and effectively to benefit the Iraqi people.

Continue reading "A proposal for Iraq"

Posted by James Hamilton at 06:36 AM permalink | Comments (7)