Category Archives: exchange rates

Remembering Richard Cooper

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December 24, 2020 —     Richard N. Cooper (Dick), who passed away Wednesday evening at the age of 86, was always young for his age.  Jim Tobin once told me a story from when Dick was a senior staff economist at the President’s Council of Economic Advisers (1961-63).  He used to bring his bicycle into his office at the Old Executive Office Building.  As I remember the story, President Kennedy remarked that apparently a high school student worked at the CEA!

As recently as a year ago, Dick was still riding his bicycle around Cambridge.  I would join his wonderful (and young!) family on weekend bike rides along the Charles River. read more

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What’s wrong with US Treasury claim of Vietnamese undervaluation

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August 27, 2020 — The US Treasury’s tendentious interpretation of the IMF’s External Balance Approach this week found a 4.7 % undervaluation of Vietnam’s currency.  It may pave the way for the US Commerce Department to impose countervailing duties (in a case involving the tire market), for the first time in a currency case. See Mark Sobel’s useful update of August 27. The Treasury claimed to find undervaluation despite small Vietnamese current account surpluses and fx reserves equal to only four months of imports. This finding is an ominous step in a predictably misguided US movement to use allegations of trading partners’ currency manipulation to justify protectionism. read more

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Weaponization of the Dollar May Backfire Yet

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October 26, 2019 —  This is a good time to gauge the rankings of the dollar and its rivals as major international currencies.  The Bank for International Settlements came out in September with its triennial survey of turnover in the world’s foreign exchange markets.  The IMF’s statistics on central bank holdings of foreign exchange reserves have gotten much more reliable lately, because China has joined in on reporting its holdings to the IMF (as Eswar Prasad explains).  And SWIFT offers every month its numbers on use of major currencies in international payments. read more

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