There's an excellent cover article in the Feb7-13 Economist. It goes into a nice explanation (with history) on how the weaker dollar actually benefits the U.S. We started to touch on this in the first few classes. It says that many economists expect the dollar to drop even more, and illuminates how a few--Japan & China--are trying to intervene.
If anyone wants to borrow this from me, please let me know. (I'll type out a few paragraphs)
"Competitive Sport in Boca Raton"
Europeans think the dollar is in danger of becoming too weak; Americans disagree, Who is right?"
The Economist
February 7-13
"Competitive Sport in Boca Raton"
Europeans think the dollar is in danger of becoming too weak; Americans disagree, Who is right?"
The Economist
February 7-13
Second paragraph
"The euro has risen by 50% against the dollar since its trough in July 2001. European officials are frustrated by America's lack of concern for the dollar's slide and the disproportionate burden this is imposing on the euro. In the run-up to the Boca Raton meeting, some European policy makers were alling for a joint statement to stabilise the dollar. But this seems likely to have fallen on deaf ears. As John Connally, a former treasury secretary, told the rest of the world in 1971: "The dollar is our currency, but it is your problem."
Posted by Sophia Tareen at February 19, 2004 11:49 PM