Is a Declining Dollar Good for Either the U.S. Economy or The Global Ecnomy?
This paper explains why a declining dollar is likely to prove deleterious to both the US economy and the Global economy. It provides statistics to demonstrate that despite a 25 percent drop in the dollar in 3 years, the US trade deficit has doubled in value. It explains why this doubling has occurred in terms of the absence of the Marshall- Lerner condition. Finally, the paper provides a new alternative policy perscription that will alleviate the US trade dficit hile promoting more rapid global economic growth for the entire global economy.
|Date of creation:||20 May 2005|
|Note:||Type of Document - wpd; pages: 24. Paper presented at the Levy Institute Conference, April 2005|
|Contact details of provider:|| Web page: http://econwpa.repec.org|
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- Stanley Fischer, 2001. "Exchange Rate Regimes: Is the Bipolar View Correct?," Journal of Economic Perspectives, American Economic Association, vol. 15(2), pages 3-24, Spring.
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