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foreign policy and global economy

Archive for the tag “Dollar”

Europe’s Dream: Escaping The Dictatorship Of The Dollar

Trump’s hostile behaviour is reinvigorating efforts to turn the euro into an alternative to the world’s dominant currency. If only the Europeans could find some way to do it.

Read Here – Foreign Policy

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The Euro Turns 20

The euro’s first 20 years played out very differently than many expected, highlighting the importance of recognizing that the future is likely to be different from the past. Given this, only a commitment to flexibility and a willingness to rise to new challenges will ensure the common currency’s continued success.

Read Here – Project Syndicate

Asia Stumbles Into Year Of The Currency War

True, Treasury Secretary Steve Mnuchin effectively declared an end to the 24-year-old strong dollar policy in January 2018. The White House quickly backtracked as markets quaked. In 2019, expect a new currency push. One motivation: US growth is losing momentum. Trump is anxious to keep the key source of his legitimacy humming along. The bigger objective, though, is reminding Asia who’s boss.

Read Here – Asia Times

The U.S. Economy Is Great, Really, For Now

Trump haters may be tempted to conclude from all this that he is about to lead America into a sudden decline, but that is not the point. This American decade started under President Obama, continued under Mr. Trump and survived congressional gridlock throughout, showing that the economy often rises above politics. The economy is driven less by ideology than by its own internal cycles, and this cycle has been turning in America’s favor for so long that it is unlikely to last much longer.

Read Here – New York Times

Forget Yuan Devaluation, What If Donald Trump Weaponises The US Dollar?

Economic fundamentals have been kind to dollar bulls since early spring, but there is no guarantee of the rally’s life expectancy, especially if “crazy town” politics gain ground in Washington. Beijing had better be prepared to ride the coming storm as it might provide a valuable opportunity.

Read Here – South China Morning Post

U.S. Deficits Are Hurting Emerging Markets

Thanks to the dollar’s outsize global role, the first casualties of a somewhat irresponsible U.S. fiscal policy are likely to be emerging economies that have used the dollar to denominate their debts, not the United States itself. A stronger dollar and rising U.S. interest rates are increasing the burden of paying all dollar-denominated debts around the world.

Read Here – Foreign Affairs

How the US stopped complaining about China’s exchange rate policy

The United States’ loud complaints about the Chinese currency’s exchange rate, a thorny issue in the two nations ties over the past decade, have quietly faded away since Donald Trump became US president.

Read Here – South China Morning Post

The Demise Of Dollar Diplomacy?

Pundits have been saying last rites for the dollar’s global dominance since the 1960s – that is, for more than half a century now. But the pundits may finally be right, because the greenback’s dominance has been sustained by geopolitical alliances that are now fraying badly.

Read Here – Project Syndicate

Welcome To The Brave New Multi-Polar World

It’s a story about the tail that wagged the dog that didn’t bark that isn’t in Kansas anymore. The dog that didn’t bark is commodity prices, and the tail that wagged is the Chinese yuan.

Read Here – Asia Times

Will Trump Destroy The Dollar?

Under President Trump, it is possible, for the first time in a generation, to imagine a concerted attack on the central bank. Conceivably, the United States could repeat the story of the mid-1960s and ’70s, when a 15-year period of central-bank independence was brought to an end by presidential bullying. Back then, Lyndon B. Johnson summoned the Fed chairman, William McChesney Martin Jr., to his Texas ranch and shoved him around the living room while proclaiming that low interest rates were imperative in a time of war.

Read Here – The Atlantic

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