The root cause of America's economic imbalances can be traced to a single factor: the strength of the US dollar. At least, that’s the view of Stephen Miran, President Trump’s newly appointed Chairman of the Council of Economic Advisors.

In an essay published late last year, Miran argued that the dollar's strength, driven by inelastic demand for Treasuries and the dollar’s status as a global reserve currency, has resulted in persistently cheap imports, reduced the competitiveness of its exports, eroded US manufacturing, and resulted in soaring deficits.

His answer to this problem is a so-called Mar-a-Lago Accord, where trading partners would sell dollars and US Treasuries from their FX reserves or face higher tariffs and the removal of security guarantees.

But is an overvalued dollar really to blame for America’s financial problems? Would trading partners agree to the plan? And what could it mean for the US markets?  

In this podcast, ING’s Chris Turner and Padhraic Garvey explain why they think the plan would be counterproductive and fraught with risk.