The dollar\u2019s global standing is a mixed blessing. Its status as a safe haven and dominant reserve currency lowers the US cost of borrowing \u2014 the so-called \u201cexorbitant privilege\u201d \u2014 which means more investment, more growth and higher incomes in the aggregate. But the dollar\u2019s strength also leans against the economy\u2019s competitiveness in international trade, which puts some of its producers at a disadvantage. What a shame that, on the face of it, you can\u2019t collect the benefits of a strong currency alongside the benefits of a weak one.<\/p>\n
On one interpretation, though, the Trump administration is aiming to do just that. According to a strategy mapped out by Stephen Miran, chairman of the president\u2019s Council of Economic Advisers, it\u2019s possible to nudge the dollar\u2019s value lower without causing long-term interest rates to rise \u2014 thus achieving greater competitiveness in trade without surrendering the exorbitant privilege. The key is to change the terms of international trade and finance by using all the instruments of US power.<\/p>\n","protected":false},"excerpt":{"rendered":"The dollar\u2019s global standing is a mixed blessing. Its status as a safe haven and dominant reserve currency…\n","protected":false},"author":2,"featured_media":11772,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[4592,28,11642,101,4549,11516,2420,105,9007,1343,11641,107,3266],"class_list":{"0":"post-11771","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-bonds","9":"tag-business","10":"tag-c-suite","11":"tag-economy","12":"tag-exports","13":"tag-global-trade","14":"tag-government","15":"tag-imports","16":"tag-interest-rates","17":"tag-policy","18":"tag-reserve-currency","19":"tag-us-dollar-spot","20":"tag-view"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/11771","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=11771"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/11771\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/11772"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=11771"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=11771"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=11771"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}