The Peterson Institute for International Economics (PIIE) is an independent nonprofit, nonpartisan research organization dedicated to strengthening prosperity and human welfare in the global economy through expert analysis and practical policy solutions.
PIIE’s renowned scholars explore and analyze a broad range of economic topics and issues, including globalization, economic and growth prospects, finance, political economy, and trade and investment, as well as economic challenges facing individual regions and countries.
Trade Talks Episode 104: How to Hit Currency Manipulators and Fight the Strong Dollar
A strengthening dollar reignites a recurring debate about how to hit back against countries that deliberately weaken the value of their currencies. Joseph Gagnon (PIIE) and Maury Obstfeld (PIIE, Berkeley) join to discuss two recent and controversial policies proposed to attack that problem. The first is retaliatory tariffs under US countervailing duty law. The second is to give the US Treasury and Federal Reserve new access to hundreds of billions of dollars to use as countervailing currency intervention.