Mnuchin Tells FT He Prefers Stronger Dollar 'Over Time'

The transcript discusses Steve Mnuchin's stance on the strong dollar policy, its implications, and the jargon surrounding it. It explores the impact of a strong dollar on emerging markets and investor behavior. The conversation also touches on the administration's preference for economic growth over deficit reduction, highlighting the challenges of tax policy and dynamic scoring.

What is one of the benefits of a strong US dollar according to the Treasury's policy?

• Lower interest rates

• Stronger manufacturing sector

• Increased inflation

• Higher import prices

What is the main issue with the US's strong dollar policy as discussed in the second section?

• It weakens the manufacturing sector

• It results in high interest rates

• It causes a dollar overshoot

• It leads to high inflation

Why do emerging market central banks hesitate to intervene in currency markets?

• Fear of US retaliation

• Lack of resources

• Desire to keep currencies weak

• Pressure from the European Central Bank

What is a challenge of achieving deficit neutrality with tax cuts?

• Lack of public support

• Increased government spending

• Difficulty in replacing lost revenues

• Opposition from the Tea Party

What is the Republican orthodoxy regarding tax cuts and economic activity?

• Tax cuts decrease economic activity

• Tax cuts are always deficit neutral

• Tax cuts increase economic activity

• Tax cuts have no impact on revenue