by Kenneth Rogoff · 27 Feb 2025 · 330pp · 127,791 words
not sway U.S. authorities in the least. After eventually giving up on strong IMF action, the United States periodically threatened to declare China a “currency manipulator,” which would have opened the door to trade sanctions. For years, the threat was never carried out. Over time, China’s trade surplus waxed and
by James Rickards · 10 Nov 2011 · 381pp · 101,559 words
credit card spending, rising home prices, rising stock prices and large no-down-payment mortgages for all comers. Although there were some complaints about Chinese currency manipulation and lost American jobs in 2004 and 2005, these complaints were muted by the highly visible but ultimately nonsustainable prosperity of those years resulting from
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forums designed in part to deal with the advent of a new currency war. It has helped to avoid an escalation in tensions over the currency manipulation charges, but has done nothing to make the issue go away. A series of bilateral summits between President Hu of China and President Obama of
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back with currency intervention by its central bank, increases in reserve requirements on any local banks taking short positions in dollars, and other forms of capital controls. In late 2010, Lula’s successor as president, Dilma Rousseff, vowed to press the G20 and the IMF for rules that would identify currency manipulators—presumably both
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toward deficit countries like the United States. This was something that used to happen automatically under the classical gold standard but now required central bank currency manipulation. Geithner’s idea went nowhere. He had wanted to target China, yet, unfortunately for his thesis, Germany also became a target, because the German trade
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currencies role in Great Depression See also Federal Reserve, U.S. certainty, in economics Chaisson, Eric J. China Beijing consumption and increased U.S. exports currency manipulation early history of government collapse economic zones and European sovereign debt crisis of 2010 excess population of single men fears of U.S. currency devaluation
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Treasury, U.S. and bailout of 2008 China’s accumulation of Treasury debt China’s purchases of Treasury bonds China’s U.S. Treasury holdings currency manipulation charges against China and dollar-yuan exchange rate exchange stabilization fund Federal Reserve IOUs to on gold exports gold reserve, increased value of and 1930s
by Anatole Kaletsky · 22 Jun 2010 · 484pp · 136,735 words
maintained, was recognized in the early phase of the free-market period, when Ronald Reagan and Margaret Thatcher were responsible for some of the biggest currency interventions and trade management decisions of all time.23 Many specific plans to influence currency movements and reduce imbalances have been proposed by prominent economists and
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politicians over the years. These plans have involved setting bands for acceptable exchange rate movements, automatic currency intervention under agreed conditions, integration of monetary and exchange rate policy, agreed ceilings on trade imbalances, and similar ideas.24 But none of the ideas for
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the gap has been steadily increasing for thirty years. It could be argued from these figures that U.S. health spending, even more than Chinese currency manipulation, Alan Greenspan’s monetary policy, lax regulation, or bankers’ greed, was the true cause of the credit crunch, the subprime crisis, and the collapse of
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that currency relationships must be left to market forces. Instead, the years ahead are likely to see increasingly explicit negotiations over trade imbalances and concerted currency interventions. There will be no return, however, to the government’s futile efforts in the 1960s and 1970s to take full control over international financial flows
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. Instead, currency interventions and global macroeconomic coordination in the future are likely to represent a pragmatic compromise between the precrisis period’s exaggerated faith in efficient markets and
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the overly prescriptive policies of the Keynesian Golden Age. Given that the U.S. and British governments were willing to engage in the massive currency interventions of the Plaza Agreement and the Louvre Accord in the mid-1980s, during the heyday of Thatcherism and Reaganomics, it is hard to see why
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seek change in China’s currency practices. While in the U.S. Senate he cosponsored tough legislation to overhaul the U.S. process for determining currency manipulation and authorizing new enforcement measures so countries like China cannot continue to get a free pass for undermining fair trade principles.” Timothy Geithner, Treasury Secretary
by James Rickards · 15 Nov 2016 · 354pp · 105,322 words
in Asia. This is not due to an initial comparative advantage in Asia, but rather a created comparative advantage through the use of protectionism and currency manipulation. Other defects in the theory of comparative advantage involve what are called externalities. These are hidden costs that do not enter into direct cost comparisons
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move in one week—huge by currency market standards. Then came the policy truncation. Christine Lagarde, French finance minister at the time, coordinated a G7 currency intervention to weaken the yen. This was considered necessary to boost the Japanese economy after the devastation. The intervention worked. By April 8, the yen had
by Russell Napier · 19 Jul 2021 · 511pp · 151,359 words
chain. With the dollar staying at current levels and Greenspan cutting interest rates, the outlook for Asian equity markets is excellent. The Asian economies operating currency intervention policies will be forced to adopt a loose monetary policy when they need a tight monetary policy. Asset prices will benefit. However, when the US
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be hoped for is that the events of Friday and the ensuing storms of today may persuade the G7 or the G3 to provide some currency intervention in Asia and thus some short-term relief. Then it is to be hoped that the Japanese can come up with the measures which finally
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developed world governments. It avoided the major political battles that would have had to be fought to force the Asian countries not to follow such currency manipulation policies. The United States had already been waging a long political war with Japan to force changes in its social capital system and even as
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selling US$2bn to buy yen in an attempt to depress the US dollar exchange rate: I felt that the conditions that can make a currency intervention effective might well be present. The first was that the yen-dollar exchange rate, now at 147 yen to the dollar, seemed to have gone
by Kimberly Clausing · 4 Mar 2019 · 555pp · 80,635 words
agreements actually have comparatively little to do with trade. For example, the TPP devoted much attention to intellectual property rights, labor standards, environmental standards, and currency manipulation. Whether these issues belong in trade agreements is an open question. In theory, there is no reason why issues outside trade cannot be included in
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rate systems causes some observers to suggest that the US government take more active measures to deter foreign currency manipulation. To be sure, there are arguments for discouraging foreign currency manipulation. Interestingly, however, China’s latest currency interventions have actually been aimed at keeping the Chinese currency’s value higher, not lower—and have thus reduced
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tends to run a trade deficit with the rest of the world. (Although Mexico has a bilateral surplus with the United States at present.) While currency manipulation might become a subject of future trade agreements, most countries target other goals (aside from the trade balance) when they set their monetary (and currency
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Sensitivity Analysis of Cross-Country Growth Regressions,” American Economic Review 82:4 (1992): 942–963. 4. See “China and Currency Manipulation,” Economist. March 2, 2017; and Eduardo Porter, “Trump Isn’t Wrong on China Currency Manipulation, Just Late,” New York Times, April 11, 2017. 5. 529 plans are so called because they are authorized
by Charles Wheelan · 18 Apr 2010 · 386pp · 122,595 words
and subsidizing producers of exports. An overvalued currency does the opposite—making imports artificially cheap and exports less competitive with the rest of the world. Currency manipulation is like any other kind of government intervention: It may serve some constructive economic purpose—or it may divert an economy’s resources from their
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day—most governments don’t have deep enough pockets to make much of a difference. As the British government and many others have learned, a currency intervention can feel like trying to warm up a cold bathtub with one spoonful of hot water at a time, particularly while speculators are doing the
by Colin Lancaster · 3 May 2021 · 245pp · 75,397 words
-four. Central banks are trying to fight back. The ECB was a disaster, but globally, we are seeing more activity: interest-rate cuts, asset purchases, currency interventions, and liquidity injections. But they need to do even more. People are losing too much fucking money. Central banks need to fight back. The Fed
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generation is in high gear. This is what makes macro great. You get to learn about epidemiology, crude oil, Hong Kong Basic Law Article 23, currency manipulation, and US elections. I’m having fun again. I want to close out the month strong. I want to see some more PnL in these
by Saifedean Ammous · 23 Mar 2018 · 571pp · 106,255 words
fiat money. With no standard of value to allow an international price mechanism to exist, and with governments increasingly captured by statist and isolationist impulses, currency manipulation emerged as a tool of trade policy, with countries seeking to devalue their currencies in order to give their exporters an advantage. More trade barriers
by Dan Dimicco · 3 Mar 2015 · 219pp · 61,720 words
we find the countries that we reduced to rubble in a world war are outpacing our manufacturing base and pummeling our job-creation engine through currency manipulation and state-owned enterprises, then something’s got to change. An Adult Conversation With the arrival of the 1970s, the world trade situation, fostered by
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, at least for a little while, and he did so in a truly bipartisan way. In 1985, he persuaded Congress to pass legislation outlawing foreign currency manipulation. Reagan worked with the Democratic Speaker of the House, Tip O’Neill, and the CEOs of Caterpillar and General Electric to get it done. Reagan
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goal of balancing the U.S. trade deficit and stimulating American exports. The Germans and the Japanese agreed. After the Plaza Accord, trade rose, and currency manipulation subsided. In just two years, the value of the deutschmark compared to the dollar fell 36 percent,4 and the value of the Japanese yen
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true, when was Germany’s lost decade? Of course, they didn’t have one. Unfortunately for the Japanese, they were much more dependent upon the currency manipulation tool than the Germans were. For companies like Nucor, the Plaza Accord was a necessary corrective and lifeline. U.S. manufacturers, which had been hammered
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gave America an advantage in the Cold War. In the previous decades, as U.S. leaders ignored the ballooning problem of Japanese and West German currency manipulation, American manufacturers began looking for other ways to compete on an unequal playing field. Because union contracts, labor costs, and regulations increased the costs of
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tax levies on disfavored imports, along with import quotas, technology mandates, and ownership restrictions. According to a study by the Economic Policy Institute, China’s currency manipulation alone has cost the United States more than 2.1 million manufacturing jobs and has added $217 billion to our trade deficit.7 This is
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want free trade, you can’t have mercantilism. If you want mercantilism, you can’t have free trade. Figure 5.1 Impacts of China’s Currency Manipulation Source: William R. Cline, “Renminbi Undervaluation, China’s Surplus, and the US Trade Deficit,” Peterson Institute, http://www.piie.com/publications/pb/pb10-20.pdf
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on Chinese aluminum after finding China had subsidized $514 million in exports. Yet the Commerce Department avoids other, more damaging findings—namely, that China’s currency manipulation is the greatest subsidy of all. Without question, China dumps steel in the United States and all around the world. But it faces virtually no
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occurred in their overseas factories. We’ve tried quiet diplomacy. It’s failed miserably. We’ve tried to publicly shame China into stopping its illegal currency manipulation. President Obama appealed directly to Chinese leaders. China’s leaders flatly denied they’re doing anything wrong. And in the face of all evidence, the
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leaders aren’t yet focused on the problem the way I’d like, I give Barack Obama and Mitt Romney credit for making China’s currency manipulation and the U.S. trade deficit an issue in the 2012 presidential election campaign. The two candidates certainly disagreed on the scope of the problem
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looking to other countries—ones that made promises that were too good to be true—for better opportunities. We allowed the number-one jobs killer, currency manipulation, to gain an upper hand and give predatory foreign competitors massive cost advantages over us. And with every recession, recovery has become more difficult. The
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going cut off its thumb because of a hangnail. It should go without saying that China isn’t the only offender when it comes to currency manipulation. But it’s the biggest. Thailand, South Korea, Japan, the European Union, and even Switzerland influence their currencies to some extent. And it’s no
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foreign governments on trade disputes. Nucor, for example, cannot file an illegal steel dumping complaint with the WTO based on currency manipulation. We’ve tried to get the federal government to recognize currency manipulation as a subsidy, but we haven’t been successful. We’ll keep trying to persuade our political leaders that we
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from various departments and federal agencies that took a rather parochial view of their responsibilities. A lot of times the answer to a question about currency manipulation or dumping or countervailing duties tended to be “You need to talk to somebody else about that.” I remember one meeting with Commerce Department officials
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where one of my fellow CEOs argued how one of the biggest impediments to the revival of U.S.-based manufacturing is Chinese currency manipulation. The response: “Well, that’s a Treasury Department issue. We don’t get into that.” I wasn’t too happy with that answer. But that
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answer we get all the time. It doesn’t work. It doesn’t do us any good to say 50 percent of the problem is currency manipulation, and the other 50 percent is lax enforcement of international trade agreements, if nobody is on the same page and everyone guards their own little
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, 173 Carnegie, Andrew, 7, 74–75, 78 Carter, Jimmy, 54, 58 Caterpillar, 59, 70, 95 China accountability and, 117–19 “Buy American” and, 136–37 currency manipulation, 101, 107 economic growth, 63–72, 99–100 environment and, 195, 198, 209–10 free trade and, 13, 96, 99–107, 135 impact on international
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, 226 Forbes, 9, 83, 197 Ford, Gerald, 54, 58 Ford, Henry, 4 Ford Motor Company, 97, 130 free trade, myth of impacts of China’s currency manipulation, 101 need for government-to-government solutions, 109–12 overview, 93–95 standing up to cheaters, 107–8 why free trade doesn’t work, 96
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