Economics
Currency Traders Spot Fatal Flaw in Republicans' Border Tax Plan
- Core assumption about U.S. dollar appreciation is ‘laughable’
- USD trade flow is rounding error in trillion-dollar FX market
BofA’s Woo Says Border Tax Doesn’t Make Sense
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In Washington D.C., one of the selling points of an ambitious border-tax plan rests on a key economic assumption: The dollar will appreciate enough to offset any increase in the cost of cheap, imported goods that so many Americans have come to rely on.
It’s just Econ 101, backed by well-established macroeconomic theory.