Listen for 3 lines.
"Global imbalances do not arise by accident. They are the cumulative result of policy choices on savings, consumption, investment, subsidies, market access, and exchange rates."
"Imbalances are of greatest concern when they are excessive, persistent, and larger than warranted by underlying macroeconomic fundamentals."
And the objective of the whole workstream: to identify "which policy choices can restore equilibrium."
A currency held below what its fundamentals support is exactly the imbalance he is describing. The G20 members have agreed the definition, agreed it damages surplus and deficit economies alike, and handed the IMF and OECD the job of monitoring it.
This is not the first time the Trump administration has said it. It is the clearest and most official signal yet.
The word to hold onto is equilibrium.
Level Playing Field !
Reset IntelligenceMelaniastasia Romanov
