The following article by Benjamin J. Cohen, Professor of International Political Economy at the University of California/Santa Barbara, was posted on the Conversation website January 25, 2018:
Breaking with long-standing tradition, U.S. Treasury Secretary Steven Mnuchin endorsed the weakening of the dollar as “good” for the United States.
Speaking during a panel at the World Economic Forum in Davos, Switzerland, on Jan. 24, Mnuchin said: “Obviously, a weaker dollar is good for us as it relates to trade and opportunities.”
The reaction was swift. The greenback dropped like a stone as news of his comments spread, hitting a three-year low in currency markets.
Never before in living memory has one of America’s top economic officials spoken in favor of a weaker dollar. The president himself dove into the mix by reassuring nervous investors after he arrived in Davos that he does, in fact, favor a stronger dollar. Continue reading “Treasury Secretary Mnuchin’s weak-dollar myopia is dangerous”