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Weak Dollar policy
The Emerging View
03 February 2017
The US economy is becoming seriously unproductive and the Trump Administration faces an important choice: support American business with heterodox policies such as import tariffs or abandon the strong Dollar policy? We think the strong Dollar policy has outlived its purpose. A lower Dollar could provide the same support for US business at a much lower cost than border adjustment. We think border adjustment is a trap set by Congress Republicans to finance a large corporate tax cut, but Trump would be left holding the macroeconomic baby. Is the new US president smart enough to see that he is being played?