Chinese “Uber for trucking” company, Full Truck Alliance (FTA), raised $1.6 billion in an initial public offering in the United States with help from Wall Street banks. While the initial haul is impressive, it is a mere fraction of the $20 billion FTA hopes to raise in the near future. To gain some appreciation for…
Yellen takes a pass on calling Vietnam, others, currency manipulators. That puts the onus on Commerce and the USTR to do something about it. Will they?
McKinsey has turned the corner on the Asia-centric model of globalization. It’s a “now-or-never” moment for US manufacturing. Here’s where CPA sees eye-to-eye.
President Biden is showing that he’s serious about his pledge to “Build Back Better.” His new $2.3 trillion “American Jobs Plan” offers a blueprint for both investing in the nation’s infrastructure and rebuilding U.S. manufacturing. Now, it’s Congress’s turn to weigh in on the specifics of the president’s proposal—and how to pay for it. If…
https://youtu.be/rFmXoxQTO18
We all remember the famous line by Bill Clinton’s campaign advisor James Carville: “It’s the economy, stupid,” he said about what mattered most to voters. The economy still matters, of course, but one of the major fundamentals of the economy is the dollar and it’s non-competitive with the rest of the world. It’s too strong.…
This Working Paper examines the impact of the proposed Market Access Charge (MAC) on international capital inflows into the US economy and the domestic US economy. We build a model including the relationships between US capital flows, the dollar exchange rate, US trade, and the US domestic economy. Our conclusion is that a 5% MAC…
CPA’s take: This well-written article explains why dollar hegemony and overvaluation is bad for US productivity and working-class people around the world. The global dollar system has few national winners. In the typical frame, understanding the US dollar means understanding the “exorbitant privilege” it confers on America. But the role of the dollar in structuring…
Editor’s Note: An article from Palladium magazine by Marc Fasteau and Ian Fletcher, read by the latter on the following podcasts. America’s resurgent interest in industrial policy will go nowhere without rigorous economic foundations. Anchor Pocket Casts Radio Public Spotify
Editors note: Ken Austin, a former treasury official, explains the intricacies of capital flows, exchange rates, and the trade deficit. Blame U.S. Policies – Starting With Tax Laws By Ken Austin For over 15 years, the United States has been locked in an escalating and seemingly endless trade war with political allies and adversaries. The…