Competitive devaluation would harm US, Brookings paper warns
Trump’s calls to devalue currency would have damaging effects if followed, researchers say
US president Donald Trump should stop urging the Federal Reserve to weaken the dollar, researchers from the Brookings Institution argue.
Trump has strongly criticised the weakness of China and Europe, alleging they are purposefully keeping the value of their currencies low. He has frequently urged the Fed to step in to lower the greenback’s value by cutting interest rates.
Brookings researchers Adam Triggs and Warwick McKibbin examine the impact that a deliberate 6-12% reduction in the value
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