The Chimera of Currency Manipulation

U.S. President Barack Obama is still pressing to obtain Trade Promotion Authority and use it to conclude negotiations for the Trans-Pacific Partnership and the Transatlantic Trade and Investment Partnership with the European Union. But many in the U.S. Congress insist that provisions must be added to the agreements to prevent currency manipulation. Let’s be clear: If the U.S. were to insist that “strong and enforceable currency disciplines” be part of trade agreements, no deals would be concluded. Other countries would refuse ? and they would be right. Linking efforts to prevent currency manipulation to trade agreements has always been a bad idea, and it still is.