Jeffrey Frankel advises the US not to squander what remains of its influence by demanding foreign-exchange interventions.
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Economics
Aug 14, 2026
Jeffrey Frankel
Those who worry that the renminbi, yen, and won are undervalued vis-à-vis the dollar are usually focused on the large trade and current-account surpluses that China, Japan, and Korea run with the US. But coordinated intervention in currency markets will not address the fundamentals underlying these imbalances.
"When this message sinks in, other countries will redouble their search for more attractive, readily usable alternatives."
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