April 9, 2015
Jeffrey Frankel Professor, Harvard University’s Kennedy School of Government Jeffrey A. Frankel is James W. Harpel Professor of Capital Formation and Growth. He directs the Program in International Finance and Macroeconomics at the National Bureau of Economic Research, where he is also on the Business Cycle Dating Committee, which officially declares recessions. He served at the Council of Economic Advisers in 1983-84 and 1996-99; as CEA Member in the Clinton Administration, Frankel's responsibilities included international economics, macroeconomics, and the environment. He currently serves on the Monetary Policy Committee of Mauritius and on advisory panels for the Federal Reserve Banks of New York and Boston. Apr 09, 2015 Congress, China, and Currency Manipulation Keywords : Currency War, Exchange Rate 13 Sina0 PrintEmail One of the few things on which the two parties in the U.S. Congress agree is the problem of “currency manipulation,” especially on the part of China. Perhaps spurred by the 18% appreciation of the dollar since mid-2014 and the first signs of a resulting net loss of American exports, Congress is once again considering legislation to attack currencies that are seen as unfairly undervalued. The proposed measures include the threat of countervailing duties against imports from offending countries. Even if one accepts the possibility of identifying a currency that is manipulated, however, China no longer qualifies. Under recent conditions, if China allowed its currency to float freely, without intervention, the renminbi would more likely depreciate against the dollar than appreciate. U.S. producers would then find it harder to compete on international markets, not easier. - See more at: http://www.chinausfocus.com/finance-economy/congress-china-and-currency-manipulation/#sthash.0EXyHj8I.dpuf
Frankel, Jeffrey A. "Congress, China, and Currency Manipulation." China-U.S. Focus. April 9, 2015.