Currency Misalignment Monitor, March 2023

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…

Sanctions Impact Due More to U.S. Economic Strength Than Dollar’s Reserve Currency Role

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.…

Good Financial Actions on Russia. Biden Must Go Further

On Saturday, the U.S. government, European Commission, and five major nations issued a statement on financial sanctions against Russia which targets some of the largest Russian banks and drastically reduces the ability of the Russian central bank to support the value of the ruble currency by restricting their access to their reserves held outside Russia.…

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…