EXCHANGE RATE MISALIGNMENT AND INTERNATIONAL LAW

Efforts to control exchange rate manipulation through international law face substantial barriers. Disregarding problems of proof, the relevant IMF standards are legally ineffective; W TO actions based on illegal export subsidies would have a weak legal foundation; potential U.S. legislation, if enacted, would likely violate the WTO Agreement; and the uncertain interface of the W TO and IMF would compromise any WTO claim based on maintaining an undervalued real exchange rate. Ongoing problems concerning exchange rate manipulation will be solved, if at all, through political cooperation, not international law.