Free trade and free markets promote sound money, as countries compete for business and investment.
by Paul Mueller
The American Institute for Economic Research
Introduction
Global trade can be a hot-button topic. Whether we have free or fair trade and issues like national security, jobs, and economic development are recurring touchpoints of debate. But what about the value of the US dollar? Tariffs figure prominently in trade policy, but the relationship between international trade and currency values has been less discussed. Currencies play a crucial role in every transaction.
The relative obscurity of how trade policy and currency interact may partially be due to the complexity of that relationship. The value of currency influences the exchange of goods, services, and capital. Policymakers and businesses should understand this dynamic because it directly impacts economic stability and competitiveness.