March 7, 2017

28. Is Trump right about currency manipulation?

In this edition of the Debunking Economics podcast we test Donald Trump’s accusations that China, Japan and Germany are manipulating their currencies – something he hates, of course, because it makes it harder for him to achieve his aim, of returning the US to a positive balance of trade. It’s a big undertaking. Is he right that these countries have an unfair advantage over the US and, if so, will a tariff barrier really rectify the problem, or just start a trade war?

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