About this work
Efforts to weaken the dollar confront the enduring appeal of US assets. This analysis links persistent fiscal deficits, foreign investment and currency strength, arguing that tariffs can redirect trade without resolving the overall external imbalance. Currency intervention alone cannot address a problem rooted partly in fiscal policy and global demand for Treasuries.
Cite this work
Marcello Estevão, Jonathan Fortun (2025). Global Macro Views: The Dollar Paradox: How to Lose a Currency War While Winning It. Institute of International Finance.