Exchange-rate manipulation by countries around the world has cost the U.S. up to five million jobs in recent years, according to a new report by the Peterson Institute for International Economics. More than 20 countries increased reserve currencies by an average of almost $1 trillion per year, thereby reducing the value of their own and making their products cheaper.
The report could stoke protectionist ideas that have long circulated in the U.S., particularly in regards to China. While China may have been the largest manipulator, the report accuses Denmark, Japan, Norway and Russia of the same practices. The U.S. has already begun restricting foreign takeovers and extending powers to probe foreign state-owned investors.