11. Currency Manipulation, the US Economy, and the Global Economic Order
- Author:
- C. Fred Bergsten and Joseph E. Gagnon
- Publication Date:
- 12-2012
- Content Type:
- Policy Brief
- Institution:
- Peterson Institute for International Economics
- Abstract:
- More than 20 countries have increased their aggregate foreign exchange reserves and other official foreign assets by an annual average of nearly $1 trillion in recent years. This buildup of official assets—mainly through intervention in the foreign exchange markets—keeps the currencies of the interveners substantially undervalued, thus boosting their international competitiveness and trade surpluses. The corresponding trade deficits are spread around the world, but the largest share of the loss centers on the United States, whose trade deficit has increased by $200 billion to $500 billion per year as a result. The United States has lost 1 million to 5 million jobs due to this foreign currency manipulation.
- Topic:
- Economics, Globalization, International Cooperation, International Trade and Finance, and World Trade Organization
- Political Geography:
- United States