The United States has ceded to the rest of the world managing the dollar’s value. For a generation, the U.S. authorities have all but withdrawn from the foreign exchange market. Yet the dollar does not float freely as a result of this hands-off U.S. policy. Instead, other authorities manage the dollar exchange rates, albeit separately. These authorities make heavier purchases of dollars in its downswings than in the upswings, damping its decline. Thus, the Fed finds that accommodative monetary policy transmits less to U.S. manufacturing and traded services, and relies on still lower rates to stimulate interest-sensitive housing and auto demand. The current U.S. dollar policy of naming and shaming surplus-running countries accumulating foreign exchange reserves does not seem to work. Three alternatives warrant consideration. First, the U.S. could reinstate its withholding tax on interest income received by non-residents and even add policy criteria to bilateral tax treaties. Second, the U.S. authorities could retaliate by selling dollars against the currencies of dollar-buying jurisdictions running chronic surpluses. However, either the withholding tax or such retaliatory foreign exchange intervention pose huge practical challenges. Third, the U.S. authorities could re-enter the foreign exchange market, making large-scale asset purchases in foreign currency when the dollar rises sharply against its average value. Such a policy would encourage private investment in U.S. traded goods and service production. The challenge is to set ex ante foreign exchange intervention rules to guide market participants’ expectations, even positioning them to do the authorities’ work.

美国已经将美元价值的管理权让给了世界其他地区。一代人以来，美国当局几乎都退出了外汇市场。然而，由于美国的这种不干涉政策，美元不能自由浮动。相反，其他当局管理美元汇率，尽管是分开的。这些当局在下跌时比在上涨时更多地购买美元，从而抑制了美元的下跌。因此，美联储发现宽松的货币政策对美国制造业和贸易服务的传导较少，并依赖更低的利率来刺激对利率敏感的住房和汽车需求。目前美元点名羞辱盈余国家积累外汇储备的政策似乎行不通。三个备选方案值得考虑。首先，美国 可以恢复对非居民收取的利息收入的预扣税，甚至在双边税收协定中增加政策标准。其次，美国当局可以通过向长期盈余的美元购买管辖区的货币出售美元来进行报复。然而，无论是预扣税还是这种报复性的外汇干预，都带来了巨大的现实挑战。第三，美国当局可以重新进入外汇市场，在美元兑其均值大幅上涨时，进行大规模的外币资产购买。这样的政策将鼓励私人投资于美国贸易商品和服务生产。挑战是设定 当局可以通过向长期存在盈余的美元购买管辖区的货币出售美元来进行报复。然而，无论是预扣税还是这种报复性的外汇干预，都带来了巨大的现实挑战。第三，美国当局可以重新进入外汇市场，在美元兑其均值大幅上涨时，进行大规模的外币资产购买。这样的政策将鼓励私人投资于美国贸易商品和服务生产。挑战是设定 当局可以通过向长期存在盈余的美元购买管辖区的货币出售美元来进行报复。然而，无论是预扣税还是这种报复性的外汇干预，都带来了巨大的现实挑战。第三，美国当局可以重新进入外汇市场，在美元兑其均值大幅上涨时，进行大规模的外币资产购买。这样的政策将鼓励私人投资于美国贸易商品和服务生产。挑战是设定 当美元兑其平均价值大幅上涨时，以外币进行大规模资产购买。这样的政策将鼓励私人投资于美国贸易商品和服务生产。挑战是设定 当美元兑其平均价值大幅上涨时，以外币进行大规模资产购买。这样的政策将鼓励私人投资于美国贸易商品和服务生产。挑战是设定事前外汇干预规则引导市场参与者的预期，甚至让他们做好当局的工作。