[ISSUE TALK] Trade war evolving into currency war as G20 fails to agree on action plan
- 6 years ago
전 세계 우려에도 계속되는 미중 갈등! 환율전쟁까지 이어지나? - 신상협 교수 대담
To further discuss the results of the G20 finance meeting and the ongoing trade and currency war we are in the midst of, we have with us Professor Shin Sang-hyup from Kyunghee University. Thank you for coming in today Professor.
My pleasure.
1 - What was not really covered in that report was the differences that still lie between the major players.
For example, the joint statement didn't really have any action plan, the U.S. Treasury Secretary said he did not really have any meaningful talks with China. The EU has called for a tax on digital companies, which mostly refers to American firms, such as Amazon and Google. I mean there's still a lot not sorted out there. Can this G20 summit be called a bit of a failure?
2 - Mnuchin also said on Friday that the U.S. would be keeping a close-eye on currency manipulation by Beijing. Trump of course has accused China of currency manipulation on multiple occasions, which of course the Chinese have denied. What do you see in the current exchange rates between the greenback and the yuan?
3 - Last week, Trump criticized Powell and the Fed for raising interest rates. Let's put aside the fact that it goes against 20 years of tradition, where the White House doesn't comment on the Fed's actions... but it seemed his comments affected the U.S. currency, and led the dollar to rise further since then. Do you think his words really had such an effect?
4 - What evidence is there that China is manipulating its currency?
5 - If you look at Trump's tweets, his concern about the rate hikes seem to be that they will strengthen the dollar and therefore cause the trade deficit to rise. Do those concerns hold water?
6 - The yuan has continued to drop against the dollar. In fact, it's the weakest it has been in a year. What does that tell us?
7 - As I understand it, trade wars will inevitably lead to a currency war. We can look back at an example from the 1980's when the U.S. engaged in a trade war with Japan. What happened then?
7a - What parallels can be made with the situation with China today?
To further discuss the results of the G20 finance meeting and the ongoing trade and currency war we are in the midst of, we have with us Professor Shin Sang-hyup from Kyunghee University. Thank you for coming in today Professor.
My pleasure.
1 - What was not really covered in that report was the differences that still lie between the major players.
For example, the joint statement didn't really have any action plan, the U.S. Treasury Secretary said he did not really have any meaningful talks with China. The EU has called for a tax on digital companies, which mostly refers to American firms, such as Amazon and Google. I mean there's still a lot not sorted out there. Can this G20 summit be called a bit of a failure?
2 - Mnuchin also said on Friday that the U.S. would be keeping a close-eye on currency manipulation by Beijing. Trump of course has accused China of currency manipulation on multiple occasions, which of course the Chinese have denied. What do you see in the current exchange rates between the greenback and the yuan?
3 - Last week, Trump criticized Powell and the Fed for raising interest rates. Let's put aside the fact that it goes against 20 years of tradition, where the White House doesn't comment on the Fed's actions... but it seemed his comments affected the U.S. currency, and led the dollar to rise further since then. Do you think his words really had such an effect?
4 - What evidence is there that China is manipulating its currency?
5 - If you look at Trump's tweets, his concern about the rate hikes seem to be that they will strengthen the dollar and therefore cause the trade deficit to rise. Do those concerns hold water?
6 - The yuan has continued to drop against the dollar. In fact, it's the weakest it has been in a year. What does that tell us?
7 - As I understand it, trade wars will inevitably lead to a currency war. We can look back at an example from the 1980's when the U.S. engaged in a trade war with Japan. What happened then?
7a - What parallels can be made with the situation with China today?