Market Says Dollar Too Strong; Overvalued Currency a Problem For Washington’s Reshoring Plans
The market is in agreement: the dollar is overvalued and will likely remain that way all year.
The market is in agreement: the dollar is overvalued and will likely remain that way all year.
By Ken Austin[1] When I was in grad school, the dollar’s reserve currency status meant something very specific – foreign central banks bought and sold dollar assets to fix (manipulate) their exchange rates. They accumulated dollars when they wished to keep their currencies depreciated to favor their export industries. Let’s call this role “Central Bank Reserve Currency”(CBRC).…
The House Financial Services Committee says American consumers are helped by a strong dollar, which lowers the price of imports to the tune of up to $45 billion per year in savings. In a $23 trillion economy, is an overvalued dollar really worth it?
New monthly index tracks currency misalignment based on latest market rates Dollar is 11.2% overvalued Japanese yen 27.7% undervalued Chinese yuan 18.9% undervalued CMM is a partnership between the Coalition for a Prosperous America (CPA) and the Blue Collar Dollar Institute (BCDI). Today we are launching our Currency Misalignment Monitor (CMM). The CMM uses the…
August trade figures reveal two things: a slowing economy, and a rising trade deficit with China as a strong dollar makes imports more attractive.
A look at what some senior executives are saying this earnings season about the dollar’s misalignment with the major currencies of the world.
In his recent WSJ column “Strong Dollar Wins the Inflation Battle in New Spin on Currency Wars,” James Mackintosh suggests that the dollar’s sharp appreciation in recent years has been good for America and may be part of “an essential rebalancing of the global economy.” The costs of a bloated dollar are very high. Trade…
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.
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.
Summary Sanctions on Russia are devastating to the Russian economy Power of the sanctions is due to concerted international action, not to the US role as world’s “reserve currency” U.S. economic power owes more to the size of U.S. economy than to dollar’s reserve status Dollar overvaluation continues to be a huge problem for U.S.…