Discover and read the best of Twitter Threads about #banterheuristic
Most recents (1)
There’s a reason the US hasn’t called China a currency manipulator since the 1990s. It carries almost no sanction and thus merely makes you look angry and weak. So naturally Donald Trump went there. Me: ft.com/content/40a877… Also a quick thread on trade and currencies. 1/n
There are almost no binding rules to stop govts manipulating fx, despite vast effort by the Bush II and Obama admins to turn the IMF into a global currency sheriff and the G20 into its posse. (The US did have a reasonable case at the time, but failed to carry the day.) 2/n
It’s v hard to measure fx misalignment like a conventional trade distortion (subsidies/dumping), as there is no definitive methodology. The IMF thinks China’s real exchange rate is about fair value but could be +8.5% to -11.5% out. Really. imf.org/en/Publication… 3/n
