"I believe deeply that it's very important for the U.S. and the economic health of the U.S. that we maintain a strong dollar," he said at a roundtable discussion with Japanese reporters. "We bear special responsibility for trying to make sure that we are implementing policy in the U.S. that will sustain confidence not just among American investors and .. savers but investors around the world" that the U.S. will fix its budgetary problems as its economy improves.
Lack of major changes in his tone indicates that, while he doesn't want any dollar freefall to shake the recovery in the U.S. economy, he may find it comfortable as long as the currency declines at a manageable pace. A weaker dollar could boost U.S. exports by making them less expensive abroad, lifting the nation's growth and cutting its trade deficit.
1 comment:
It is true that weaker dollar makes domestic goods cheaper abroad. It should help US economy to boost exports, which will lead to higher economic growth. However, strong dollar will be needed at some point of time, because American firms are becoming less efficient relative to foreign companies. The question is when will be a good time to start lifting dollar's value.
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