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Currency Traders Spot Flaw in Border Tax Plan

The plan's core assumption about U.S. dollar appreciation is laughable.

By Andrea Wong, Bloomberg | Updated on April 20, 2017

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.

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