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.…
Can the MAC Make the Federal Funds Rate More Effective?
Background When inflation threatens America’s stability and economic growth, the Fed raises the Federal Funds Rate (FFR). This reduces domestic demand for borrowed funds, and that reduces the growth of domestic money in circulation and thus the rate of inflation. This approach worked reasonably well from the 1930s when the FFR became an official policy…
Wall Street Helps China Truck Service Raise $1.6 Billion
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’s Failure on Currency Manipulation: “What She Said. What She Did.”
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?
From Climate to China Dependency, Remapping Supply Chains Gains Traction Among Big Business
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.
Opinion | Biden jobs plan can be paid for by fixing overvalued U.S. dollar
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…