Accountability and Oversight of US Exchange Rate Policy by C. Randall Henning

By C. Randall Henning

The dispute over chinese language alternate expense coverage in the usa has generated a chain of legislative proposals to limit the discretion of the USA Treasury division in settling on forex manipulation and to reform the department's responsibility to the Congress. This learn stories the Treasury's stories to the Congress on trade price coverage brought through the 1988 exchange act and Congress's therapy of them. It reveals that the responsibility procedure has usually no longer labored good in perform: The insurance of the experiences has occasionally been incomplete and never supplied a enough foundation for congressional oversight. Nor has Congress continuously played its personal position good, conserving hearings on below half the studies and overlooking very important major matters. a number of concepts can increase advice to the Treasury, criteria for evaluate, and congressional oversight. those contain (1) refining the standards used to figure out forex manipulation and writing them into legislation; (2) explicitly harnessing US judgements on manipulation to the IMF's ideas on alternate charges; (3) clarifying the final ambitions folks alternate fee coverage; (4) reaffirming the mandate to hunt overseas macroeconomic and forex cooperation; and (5) institutionalizing multicommittee oversight of trade cost coverage by way of Congress. As they strengthen laws concentrating on manipulation, additionally, legislators are usually not lose sight of the wider reasons of the 1988 act when it comes to the powerful valuation of the buck, the present account, and their ramifications for the USA economic climate total.

Show description

Read Online or Download Accountability and Oversight of US Exchange Rate Policy (Policy Analyses in International Economics) PDF

Similar money & monetary policy books

Money, History, and International Finance: Essays in Honor of Anna J. Schwartz (National Bureau of Economic Research Conference Report)

This quantity presents a serious overview of Anna J. Schwartz's paintings and probes numerous points of the gigantic contribution of her scholarship—How good has it stood the try of time? What reviews were leveled opposed to it? How has financial study constructed through the years, and the way has her impact been manifested?

The Theory of Money and Financial Institutions: Volume 1

This can be the 1st quantity in a three-volume exposition of Martin Shubik's imaginative and prescient of "mathematical institutional economics"—a time period he coined in 1959 to explain the theoretical underpinnings wanted for the development of an fiscal dynamics. The aim is to improve a process-oriented concept of cash and fiscal associations that reconciles micro- and macroeconomics, utilizing as a major device the idea of video games in strategic and wide shape.

Money and Capital Markets in Postbellum America

Postbellum financial switch within the usa required an effective procedure during which capital can be transferred to parts the place it used to be particularly scarce. In assessing the constitution that developed to fulfill this desire, John James presents a brand new and convincing rationalization of the forces underlying the mixing of separate and native cash markets to shape a countrywide marketplace.

Global Shock, Risks, and Asian Financial Reform

The expansion of monetary markets has basically outpaced the advance of monetary marketplace laws. With starting to be complexity on this planet of finance, and the consequent better frequency of economic crises, all eyes have shifted towards the present inadequacy of economic rules. This e-book expertly examines what this episode ability for Asia's monetary zone and its balance, and what the consequences should be for the region's monetary rules.

Additional resources for Accountability and Oversight of US Exchange Rate Policy (Policy Analyses in International Economics)

Sample text

The broadest test would ask whether the reports address policies and problems that the markets, the public, and Congress care about. This book is concerned with all three standards, so this chapter takes a broad approach and examines the reports’ treatment of important questions confronting international monetary policy in general: early findings of manipulation, the Mexican peso crisis of 1994–95, the Asian financial crisis of 1997–98, the Economic and Monetary Union (EMU) in Europe, Japanese intervention in 2003–04, fiscal policy, and Chinese exchange rate policy during 2000–07.

Treasury nonetheless expressed its concern that both governments retained the ability to manipulate the exchange rate, noted that the currency should continue to contribute to adjustment of their external balances, and warned that it would continue to scrutinize the policies of both countries. 3 6/3/08 9:00 PM Page 27 US current account balance, 1988–2007 billions of dollars 100 0 Ϫ100 Ϫ200 Ϫ300 Ϫ400 Ϫ500 Ϫ600 Ϫ700 Ϫ800 89 19 90 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 19 19 88 Ϫ900 Source: International Monetary Fund, International Financial Statistics, various years.

See also Goldstein (2006) and Mussa (2007). 4. The Act is reproduced in appendix A. EXCHANGE RATES ACT OF 1988 19 ch03_15047_Peterson_Henning 6/3/08 9:00 PM Page 20 Section 3003 states that “[i]t is the policy of the United States that” the United States and its partners should continue the process of coordinating “monetary, fiscal, and structural policies” begun with the Plaza Accord. ” The United States and its partners should intervene, “in combination with necessary macroeconomic policy changes,” to bring this about.

Download PDF sample

Rated 4.85 of 5 – based on 39 votes