Is the Dollar Overvalued? New Treasury Report Says Yes.
Treasury says the dollar is overvalued, but has no plans to fix it. Wall Street will remain the deciding factor in the dollar’s fate. Meanwhile, foreign central banks take action.
U.S. Domestic Market Share Index Hits All-Time Low
WASHINGTON — The Coalition for a Prosperous America (CPA) today released an update to the Domestic Market Share Index (DMSI), a new indicator that measures the success of U.S. manufacturing producers in the U.S. home market. The DMSI fell to 66.2 in Q2 2022, down from 67.2 in the previous quarter, indicating that domestic producers…
CPA Urges Fed, Treasury, Congress to Address Soaring U.S. Dollar
Currency misalignment reaching critical level WASHINGTON — The Coalition for a Prosperous America (CPA) today formally urged the federal government to address the U.S. dollar’s continuing overvaluation. In a letter to U.S. Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell, and the leadership of the Senate Banking and House Financial Services Committees, CPA highlighted…
Global Corporate Earnings Putting Overvalued Dollar in Spotlight
A look at what some senior executives are saying this earnings season about the dollar’s misalignment with the major currencies of the world.
Domestic Manufacturer’s Share of U.S. Market is Shrinking. CPA Economists Explain Why.
CPA economists Jeff Ferry and Amanda Mayoral explain the continued deterioration of market share for domestic producers versus imports.
China Commission: ‘Overvalued Dollar’ is a Real U.S. Trade Problem
At a hearing by the U.S. China Economic and Security Review Commission, the Market Access Charge is brought up as a way to balance trade.
Is a Strong Dollar Really all That Important?
Ex-World Banker John Hansen explains why a strong dollar might not be as good as the Washington-Wall Street consensus would have us think.
Capital Flow Management: A Missing but Essential Economic Policy Tool
Capital flow management is coming back into vogue among economists, government officials in other countries and in international institutions. As international capital flows continue to grow to tens or even hundreds of trillions of dollars per year, washing around unpredictably between countries and financial institutions, officials are increasingly looking at ways to put some sort…
New Study: Global Currency Misalignment Challenges US Reindustrialization Efforts
A new CPA study, using widely accepted methodology and IMF data, shows that for the world’s major economies to achieve fair currency values and eliminate global imbalances, large adjustments in major currencies would be required. The dollar would need to fall by 16.6%, while the Chinese yuan would need to rise against the dollar by…
CPA Letter to Secretary Yellen and Chairman Powell on Implementing a Market Access Charge
CPA sent the following letter to Secretary of the Treasury Janet Yellen and Chairman of the Federal Reserve Jerome Powell regarding implementing a new monetary policy tool called a Market Access Charge (MAC) to complement the Fed Funds Rate (FFR). The MAC would make it possible to moderate excessive flows of money into the U.S.…