CPA’s take: This well-written article explains why dollar hegemony and overvaluation is bad for US productivity and working-class people around the world. The global dollar...Read more
CPA believes an overvalued dollar makes American goods and services less competitive in global markets. The Competitive Dollar for Jobs and Prosperity Act will create good jobs, rebalance trade and rebuild American prosperity.
Persistent U.S. dollar overvaluation fuels much of America’s global trade deficit by raising the price of U.S. goods and services in global markets. While the United States has an array of fiscal and monetary tools to manage its internal economy, it lacks effective exchange rate management tools to manage trade flows that have a powerful effect on the domestic economy.
For this reason, CPA advocates for The Competitive Dollar For Jobs And Prosperity Act, introduced by Senator Baldwin & Senator Hawley. This bill tasks the Federal Reserve with achieving and maintaining a current account balancing price for the dollar within five years.