Peterson Institute for International Economics
Washington, DC
June 2017
CURRENCY
CONFLICT
AND
TRADE
POLICY
A NEW
STRATEGY
FOR THE
UNITED
STATES
C. FRED BERGSTEN AND
JOSEPH E. GAGNON
4.20.17_Peterson_CurrencyConflict_TITLE PAGE.indd 14/20/17 1:33 PM
Peterson Institute for International Economics
Washington, DC
June 2017
CURRENCY
CONFLICT
AND
TRADE
POLICY
A NEW
STRATEGY
FOR THE
UNITED
STATES
C. FRED BERGSTEN AND
JOSEPH E. GAGNON
4.20.17_Peterson_CurrencyConflict_TITLE PAGE.indd 14/20/17 1:33 PM
Peterson Institute for International Economics
Washington, DC
June 2017
CURRENCY
CONFLICT
AND
TRADE
POLICY
A NEW
STRATEGY
FOR THE
UNITED
STATES
C. FRED BERGSTEN AND
JOSEPH E. GAGNON
4.20.17_Peterson_CurrencyConflict_TITLE PAGE.indd 14/20/17 1:33 PM
Bergsten and Gagnon have written a very interesting and provocative book about currency manipulation
and what the United States should do about it.
—Ben Bernanke, former chairman of the Federal Reserve Board
Based on rigorous analysis and their deep understanding of the dynamics of real-world international trade,
Bergsten and Gagnon forcefully explain why understanding and resolving currency conficts is essential to
the future of globalization. They not only document the problem of currency conficts in today’s interna-
tional trading system but also ofer detailed, workable solutions. For those of us who recognize the benefts
and costs of international trade, this is required reading.
—Jared Bernstein, former chief economist to Vice President Joseph Biden
“Currency confict” and “manipulation” have bedeviled policymakers, political leaders, and publics since the
beginning of the modern era of foating exchange rates. Bergsten and Gagnon ofer a principled basis for
assessing manipulation and recommend a practical tool to counter exchange rate distortions. In doing so,
they have identifed the missing link between IMF rules on exchange rates and WTO strictures on barriers
to trade.
—Robert Zoellick, former president of the World Bank and US Trade Representative
Bergsten and Gagnon are long-time trusted authorities serving as thought leaders on the critically impor-
tant issues of international fnancial and exchange rate policies. In this comprehensive study, they describe
the “Decade of Manipulation” from 2003 to 2013 and its signifcant contribution to US job loss and to the
fnancial crisis and recession. They leave no doubt that we must act to prevent it from happening again. We
need structural reform to address not only the problem of currency manipulation but also the problem of
inadequate eforts to address it. This book outlines a number of thoughtful proposals and should spark a
serious dialogue about how best to move forward.
—Rep. Sander Levin (D-MI)
In a comprehensive analysis, Bergsten and Gagnon show why the problem of trade imbalances has not
gone away.Fortunately, neither have they.So read this book to understand what has gone wrong with the
world economy and how to put it right.
Lord Mervyn King, Former Governor of the Bank of England
In recent years, Fred Bergsten and Joseph Gagnon literally defned the terms of the policy debate over how
countries should and should not manage their exchange rates. Their views directly infuenced the path-
breaking macroeconomic policy declaration that the Obama administration negotiated alongside the
Trans-Pacifc Partnership. Going forward, it is hard to imagine the United States entering any new trade
agreements that do not explicitly prohibit currency manipulation.
—Rory MacFarquhar, former special assistant to President Barack Obama for international economics, and
visiting fellow, Peterson Institute for International Economics
Bergsten and Gagnon provide a thorough examination of the economic implications of currency manipula-
tion and possible policy responses. In particular, they help us understand how foreign ofcial reserve ac-
cumulation has signifcant implications for international fnancial fows and current account balances. This
timely book is sure to stimulate debate and refection.
—Douglas Irwin, Dartmouth College
Peterson Institute for International Economics
Washington, DC
June 2017
CURRENCY
CONFLICT
AND
TRADE
POLICY
A NEW
STRATEGY
FOR THE
UNITED
STATES
C. FRED BERGSTEN AND
JOSEPH E. GAGNON
4.20.17_Peterson_CurrencyConflict_TITLE PAGE.indd 14/20/17 1:33 PM
Peterson Institute for International Economics
Washington, DC
June 2017
CURRENCY
CONFLICT
AND
TRADE
POLICY
A NEW
STRATEGY
FOR THE
UNITED
STATES
C. FRED BERGSTEN AND
JOSEPH E. GAGNON
4.20.17_Peterson_CurrencyConflict_TITLE PAGE.indd 14/20/17 1:33 PM
Peterson Institute for International Economics
Washington, DC
June 2017
CURRENCY
CONFLICT
AND
TRADE
POLICY
A NEW
STRATEGY
FOR THE
UNITED
STATES
C. FRED BERGSTEN AND
JOSEPH E. GAGNON
4.20.17_Peterson_CurrencyConflict_TITLE PAGE.indd 14/20/17 1:33 PM
Peterson Institute for International Economics
Washington, DC
June 2017
CURRENCY
CONFLICT
AND
TRADE
POLICY
A NEW
STRATEGY
FOR THE
UNITED
STATES
C. FRED BERGSTEN AND
JOSEPH E. GAGNON
4.20.17_Peterson_CurrencyConflict_TITLE PAGE.indd 14/20/17 1:33 PM
Peterson Institute for International Economics
Washington, DC
June 2017。