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Manufacturing is still critical to the economy United States. Clyde Prestowitz, says it's time to start realizing the positive spillovers that manufacturing creates... Read more  

Events & Activities

Stephen Olson at Chinese Development Institute Conference

 

 Clyde Prestowitz giving presentation to CDI...

 

Steve Olson teaching trade negotiations at the Mekong Institute...

 

Stephen Olson to speak at upcoming workshop organized by the International Institute for Trade and Development on 

"Economics of GMS Agricultural trade in goods and services towards the world market"

Chiangmai, Thailand Sep 8-12.

(11/28/09) Prestowitz Editorial in Washington Post

A Real Remedy for a Currency Dispute


Saturday, November 28, 2009

The Nov. 24 editorial "The currency quarrel" correctly argued that China is unlikely to respond to U.S. requests that it stop intervening in the currency markets to keep the yuan undervalued vs. the dollar. It was also correct to argue that Washington should stop harassing the Chinese and simply take its own corrective measures. But the editorial's proposal for an "exit strategy" for fiscal and monetary policy falls in the category of necessary but insufficient.

China and other Asian countries systematically undervalued their currencies even when the United States had budget surpluses and relatively high interest rates. Beyond fiscal responsibility, the United States should be initiating discussions at the World Trade Organization and the International Monetary Fund about nullification and impairment of trade agreements, indirect export subsidies and violation of currency manipulation commitments. Washington could revisit the Nixon-era debate on the same subject for guidance.

Clyde Prestowitz, Potomac

The writer is president of the Economic Strategy Institute.

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Latest Publications


The Betrayal of American Prosperity.


The Trans-Paific Partnership and Japan.


Making the Mexian Miracle.


Industrial Policy and Rebalancing in the US and China.


The Evolving Role of China in International Institutions.

 

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