2018-10-17 12:33:00 Wed ET
federal reserve monetary policy treasury dollar employment inflation interest rate exchange rate macrofinance recession systemic risk economic growth central bank fomc greenback forward guidance euro capital global financial cycle credit cycle yield curve
The Trump administration blames China for egregious currency misalignment, but this criticism cannot confirm *currency manipulation* on the part of the Chinese Xi administration. As President Trump remains eager to continue the Sino-U.S. trade war, the U.S. Treasury releases its biennial currency exchange report that criticizes the Chinese trade and currency practices. However, this report cannot conclude that the Chinese government improperly devalues its renminbi currency in order to improve competitive export prices.
If U.S. Treasury categorizes China as a currency manipulator, this decision would inadvertently ratchet up substantial trade tension between America and China. For technical reasons, the status quo remains the same. As the Chinese government continues to constrain its direct intervention in the foreign exchange market, there is minimal evidence of currency manipulation in China. At best, the recent Chinese renminbi devaluation amounts to transient currency misalignment.
On the other hand, the Trump administration begins to conduct bilateral trade pacts with former Trans-Pacific Partnership (TPP) members in order to contain China's economic prowess. As the Trump administration revives trade talks with 11 Asian countries, Britain, and European Union, this bilateral tactic better prepares for the next round of Sino-American trade negotiations soon after the mid-term elections.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2018-01-15 07:35:00 Monday ET

Treasury Secretary Steven Mnuchin welcomes a weak U.S. dollar amid pervasive fears of an open trade war between America and China. At the World Economic For
2023-09-14 09:28:00 Thursday ET

Colin Camerer, George Loewenstein, and Matthew Rabin assess the recent advances in the behavioral economic science. Colin Camerer, George Loewenstei
2019-01-19 12:38:00 Saturday ET

U.S. government shuts down again because House Democrats refuse to spend $5 billion on the border wall that would give President Trump great victory on his
2018-11-27 10:37:00 Tuesday ET

Warren Buffett offloads a few stocks from the Berkshire Hathaway portfolio in mid-November 2018. The latest S.E.C. report shows that the Oracle of Omaha sol
2019-06-29 17:30:00 Saturday ET

Nobel Laureate Joseph Stiglitz proposes the primary economic priorities in lieu of neoliberalism. Neoliberalism includes lower taxation, deregulation, socia
2017-12-21 12:45:00 Thursday ET

Tony Robbins summarizes several personal finance and investment lessons for the typical layperson: We cannot beat the stock market very often, so it w