22 U.S.C. § 5302 — Findings
submitted 38 years ago by Pub. L. 100-418 to r/title-22-FOREIGN-RELATIONS-AND-INTERCOURSE · 318 words · no verdicts yet
This section states Congress’s findings about economic policies, exchange rates, trade imbalances, and capital flows among nations. It also addresses currency intervention by the United States and the need for better coordination of economic policies.
Congress finds the following:
(1) The leading industrialized nations need to coordinate their "macroeconomic policies," including their "exchange rate policies," better. These policies are not consistent with long-term economic growth and financial stability. This section does not define those terms.
(2) Currency values play a major part in deciding where goods and services are produced and traded in the world economy.
(3) The increase in the dollar’s value in the early 1980s contributed substantially to the United States’ current trade deficit.
(4) Exchange rates among major trading nations have become more and more unstable. At times, the pattern of exchange rates has caused large and lasting imbalances in the movement of goods and services between nations. This puts serious strain on the world trading system and makes it harder for businesses and governments to plan.
(5) The movement of capital between nations has become very large compared with the movement of goods and services through trade. These capital movements sometimes react quickly and dramatically to policy and economic changes. Because of this, they add significantly to uncertainty in financial markets, unstable exchange rates, and the development of exchange rates that create imbalances in the movement of goods and services between nations.
(6) Some major trading nations have adopted policies that manipulate the value of their currencies compared with the United States dollar to gain a competitive advantage. Those policies continue to create serious competitive problems for United States industries.
(7) A major focus of national economic policy should be achieving a more stable exchange rate for the dollar at a level consistent with a more suitable and lasting balance in the United States "current account." This section does not define "current account."
(8) Procedures for coordinating "macroeconomic policy" need to be strengthened considerably. This section does not define "macroeconomic policy."
(9) In suitable circumstances, the United States could intervene in "foreign exchange markets" as part of a "coordinated international strategic intervention effort." This could lead to more orderly adjustment of foreign exchange markets. Together with needed changes in macroeconomic policy, it could also help move nations toward a more suitable and lasting balance in their current accounts. This section does not define the quoted terms.
The Congress finds that—
the macroeconomic policies, including the exchange rate policies, of the leading industrialized nations require improved coordination and are not consistent with long-term economic growth and financial stability;
currency values have a major role in determining the patterns of production and trade in the world economy;
the rise in the value of the dollar in the early 1980’s contributed substantially to our current trade deficit;
exchange rates among major trading nations have become increasingly volatile and a pattern of exchange rates has at times developed which contribute to substantial and persistent imbalances in the flow of goods and services between nations, imposing serious strains on the world trading system and frustrating both business and government planning;
capital flows between nations have become very large compared to trade flows, respond at times quickly and dramatically to policy and economic changes, and, for these reasons, contribute significantly to uncertainty in financial markets, the volatility of exchange rates, and the development of exchange rates which produce imbalances in the flow of goods and services between nations;
policy initiatives by some major trading nations that manipulate the value of their currencies in relation to the United States dollar to gain competitive advantage continue to create serious competitive problems for United States industries;
a more stable exchange rate for the dollar at a level consistent with a more appropriate and sustainable balance in the United States current account should be a major focus of national economic policy;
procedures for improving the coordination of macroeconomic policy need to be strengthened considerably; and
under appropriate circumstances, intervention by the United States in foreign exchange markets as part of a coordinated international strategic intervention effort could produce more orderly adjustment of foreign exchange markets and, in combination with necessary macroeconomic policy changes, assist adjustment toward a more appropriate and sustainable balance in current accounts.
Source credit: (Pub. L. 100–418, title III, § 3002, Aug. 23, 1988, 102 Stat. 1372.)
- 1988Enacted · Pub. L. 100-418 · 102 Stat. 1372
A history note hasn’t been published yet. The record shows enactment by Pub. L. 100-418 on 1988-08-23.
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