Trade agreement measures will not address currency manipulation concerns Baker Institute expert

first_imgShareEXPERT ALERTDavid [email protected] [email protected] agreement measures will not address currency manipulation concerns, Baker Institute expert saysHOUSTON – (April 29, 2015) – As Congress resumes work this spring on a bill granting Trade Promotion Authority to President Barack Obama for completion of the Trans-Pacific Partnership trade pact, many members have sought inclusion of a chapter on currency manipulation.Credit: thinkstockphotos.com/Rice UniversityHowever, Congress cannot proceed without clarifying how to identify currency manipulation, according to Russell Green, an economist at Rice University’s Baker Institute for Public Policy. “At present, the choice lies between determination by signatories — a clear poison pill for the agreement — or determination by the International Monetary Fund (IMF), which renders the measure moot,” he said.Green, the Baker Institute’s Will Clayton Fellow in International Economics and an adjunct assistant professor of economics at Rice, has written an issue brief on the topic, “The Unfavorable Economics of Currency Manipulation Chapters in Trade Agreements,” and is available to comment on Congress’ proceedings.In his brief, Green reviews the difficulties of distinguishing between exchange-rate manipulation and legitimate, domestic-oriented policies and suggests there may be serious political obstacles to implementation.“Currency manipulation is a legitimate concern,” Green said. “However, countermeasures require clear, objective identification of currency manipulation. Both the IMF and the U.S. Treasury Department have mandates to identify currency manipulation, yet neither has done so in the past 20 years. If it can be done, why has it not happened more often?”For more information or to interview Green, contact Jeff Falk, associate director of national media relations at Rice, at [email protected] or 713-348-6775.-30-Follow the Baker Institute via Twitter @BakerInstitute.Follow Rice News and Media Relations via Twitter @RiceUNews.Related materials:Green biography: http://bakerinstitute.org/experts/russell-green.Founded in 1993, Rice University’s Baker Institute ranks among the top 10 university-affiliated think tanks in the world. As a premier nonpartisan think tank, the institute conducts research on domestic and foreign policy issues with the goal of bridging the gap between the theory and practice of public policy. The institute’s strong track record of achievement reflects the work of its endowed fellows, Rice University faculty scholars and staff, coupled with its outreach to the Rice student body through fellow-taught classes — including a public policy course — and student leadership and internship programs. Learn more about the institute at www.bakerinstitute.org or on the institute’s blog, http://blogs.chron.com/bakerblog. AddThislast_img

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