6/28/2019

Trump Is Wrong About the Dollar — and So Is Warren

"It is true that in the short run, currency manipulation can serve as useful stimulus for an economy with an aggregate demand shortfall. But the complainers here are not talking about the short run. Rather, Trump and Warren are alleging a decades-long pattern in which China, Germany and other nations have accumulated unjustified trade surpluses. In this context, the currency manipulation explanation just doesn’t wash."