Mon, Jun 24, 2019 - Page 16 News List

Currencies may be next battleground

AFP, WASHINGTON

That ambiguity raises red flags for economists, many of whom believe the department does not have the technical expertise to make that evaluation.

The plan “would grant the commerce department excessive discretion,” Sobel said.

It also is notoriously difficult to calculate objectively whether a particular currency is undervalued and, if so, by how much.

For years, the Peterson Institute for International Economics produced a report evaluating exchange rates, but stopped “because they were completely arbitrary,” the think tank’s president Adam Posen told reporters.

“China should have been hammered hard in the early, mid-2000s for massive manipulation of the currency,” Posen said, but to do so now would be “pretty close to absurd.”

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