Efficient markets and exchange rates

Preference for market-determined exchange rates is not backed by evidence

After agreeing to a trade truce with China (“The global political economy”, April 21) on his recent visit to Europe for a Group of Seven summit meeting, US President Donald Trump opened another front in his global trade war: This time the enemy is Germany. (Incidentally, the truce with China has nothing to do with that country having agreed to register “Trump” as a brand name earning royalties for several high-priced goods and services to be sold in China, soon after Trump’s meeting with Chinese President Xi Jinping.) But this apart, Trump is right on one point: The US’ external