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    It’s Not the Value of the Chinese Currency: The Proof in Charts

    While the U.S. Treasury did not label China as a currency manipulator this week, it did criticize the Chinese authorities for recently intervening in the foreign exchange market. However, the yuan–dollar exchange value has no effect on the U.S.–Chinese bilateral trade balance. This is because a lot has changed in … More

    Bail Bond Bait and Switch: Police Seize Money from Innocent Mother

    As much as 90 percent of the currency circulating throughout the United States contains trace amounts of cocaine. No one would expect the police to claim someone’s money must be “dirty” based on trace presence of drugs alone. But that is exactly what law enforcement officers in Brown County, Wisconsin, … More

    Emerging Markets Have Caught a “Fed Cold”

    Stock prices and exchange rates in emerging markets such as India and Indonesia are taking a beating this week. The immediate cause is that the Federal Reserve just might reduce the gigantic amount of stimulus it’s been applying to the world economy. What’s really on display is the failure of … More

    Will the Currency Zombie Eat the Trans-Pacific Partnership?

    Currency manipulation is the issue that never dies. No matter how many times the link between exchange rates and American jobs is shown to be tenuous, the matter rises again like a zombie. In this case, it is Japan that has brought exchange rates back into the spotlight, as the … More

    European Union Loophole Allows Iran to Circumvent Full Force of Sanctions

    A technical loophole is allowing the theocratic regime in Iran to skirt the full force of economic sanctions meant to compel the country to give up its nuclear ambitions. A recent letter from a bipartisan group of U.S. Senators to the presidents of the European Council and European Central Bank … More

    Bashing China Won’t Fix Our Economy

    Both ends of the political spectrum seem to be competing to be tougher on China economic issues. They’re both wrong. Chinese policy does warp the global economy in a number of ways, but 99 percent of our current problems is of our own making. Bashing China feels good but accomplishes … More

    How Congress Should Deal with China

    The House Ways and Means Committee will hold a hearing tomorrow on America’s economic relations with China. This is easier said than done—there’s a lot of ground to cover. One topic gets the most attention, of course: China’s currency policy. We should all hope that the committee can move beyond … More

    Congress Plays Around on China

    The Senate is today considering a bill to punish China for its currency policy. The bill requires the U.S. to place duties on Chinese goods if the exchange rate of the yuan against the dollar isn’t brought to a level Congress finds suitable. It is vague on that level, on … More

    Morning Bell: The Protectionist Threat of Another Great Depression

    A financial bubble fueled by easy money and loose credit bursts. Unemployment shoots up, and gross domestic product falls sharply. Some in the U.S. Congress blame foreigners for unfair trade practices and pass a trade bill that prompts widespread retaliation, exacerbates the popping of the bubble, and sends the country … More

    China's Not-So-New Currency Policy

    Beijing finally made a move on exchange rates, probably. Assuming there is some action to go with the People’s Bank of China’s stilted language, two critical errors are being made in the international response. The first concerns the nature of the change. The one-line summary, in China and elsewhere, is … More