4 ms·
It comes down to at least two things: 1. Easy (to acquire) debt drives demand 2. Education is still "Made in America" thus it cannot hide from the real devalu
by OldSchool 12y ago
It comes down to at least two things:
1. Easy (to acquire) debt drives demand
2. Education is still "Made in America" thus it cannot hide from the real devaluation of the dollar
- JumpCrisscross 12y ago> thus it cannot hide from the real devaluation of the dollar The trade-weighted U.S. dollar index [1], published by the Board of Governors of the Federal Reserve, shows a 1.2% annualised decline in the U.S. dollar over the past 10 years. This is sufficiently low and hedge-able as to not be a key determinant in this pricing process. Your broader point stands, however. Education is a non-tradable good. This amplifies the effect of local idiosyncrasies, e.g. non-dischargeable federally-backed education loans, in a way which would be arbitraged away for a tradable good. [1] http://research.stlouisfed.org/fred2/series/TWEXBp http://research.stlouisfed.org/fred2/series/TWEXBp