Currency Misalignment Monitor, April 2024
The April Currency Misalignment Monitor shows that the dollar continues to be heavily overvalued and major Asian currencies remain undervalued.
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.
The April Currency Misalignment Monitor shows that the dollar continues to be heavily overvalued and major Asian currencies remain undervalued.
By Ken Austin[1] When I was in grad school, the dollar’s reserve currency status meant something very specific – foreign central banks bought and sold
How can U.S. industry, small and large, compete against countries with much weaker currencies, lower labor and environmental regulatory costs, and the overproduction and dumping that come from Asia?
The House Financial Services Committee says American consumers are helped by a strong dollar, which lowers the price of imports to the tune of up to $45 billion per year in savings. In a $23 trillion economy, is an overvalued dollar really worth it?
The U.S. is the most overvalued among major currencies.
America’s international debt continues to grow. According to the federal government’s Bureau of Economic Analysis, our international debt, referred to in government data as Net