Currency Disputes

I'm beginning to think that Paul Krugman is the only one more obsessed with the Chinese currency value issue than I am (not that I agree with all of his views of the issue, but I do share his interest).  As Dan Drezner notes, here is yet another

Bryan Mercurio and Celine Sze Ning Leung have posted "Is China a 'Currency Manipulator'?: The Legitimacy of China’s Exchange Regime Under the Current International Legal Framework" on SSRN.  Here's the abstract: While most economists are in agreement that China’s currency is undervalued,

Economist Simon Johnson writes the following at the NY Times Economix blog: But the mainstream consensus is starting to shift toward the idea that the World Trade Organization (W.T.O.), not the I.M.F., should have jurisdiction over exchange rates. The W.T.O. has much more legitimacy,

It's not just about China.  From the Washington Post: This week, a top aide to French President Nicolas Sarkozy called the value of the dollar "a disaster" for Europe, warning of dire consequences to the global economy if it remains at its current levels. In some

First he explains: The value of China’s currency, unlike, say, the value of the British pound, isn’t determined by supply and demand. Instead, Chinese authorities enforced that target by buying or selling their currency in the foreign exchange market ...And then he complains:U.S. officials have been

From an article entitled "The Dollar and the Deficits: How Washington Can Prevent the Next Crisis": A central goal of US foreign economic policy must be to prevent and counter deliberate currency undervaluations by other major countries, which keep the dollar overvalued and harm US competitiveness. China has

This statement comes from an article in this week's Economist.  Earlier in the piece, they talk about the Great Depression and make the following point that helps explain why devaluations cause trade tensions: Countries that cut the link to gold quickly and allowed their currencies to fluctuate endured

I'm going to go out on (somewhat of) a limb, and predict that this legislation, or something like it, will pass and result in a major trade dispute in the near future: US lawmakers on Wednesday unveiled a plan to retaliate against countries, like China, that allegedly manipulate

The rhetoric a few weeks back from Obama's new Treasury Secretary Tim Geithner on China's currency "manipulation" has generated a bit of a response.  Here's a sampling: The Economist: CHINA has been accused of “manipulating” its currency by Tim Geithner, America’s