The Economy in Perspective
Money talks … Many analysts have been projecting a decline in the dollar’s foreign exchange value for years now. Their logic seems to be that the U.S. trade balance, which has been in considerable deficit lately, “should” move toward zero, or surplus, and that dollar depreciation is a necessary part of this process. U.S. manufacturing companies, in particular, have been complaining that the “strong dollar” is an obstacle to profitability and that the U.S. government should take steps to weaken the dollar’s value.
Suggested citation: "The Economy in Perspective," Federal Reserve Bank of Cleveland, Economic Trends, no. 02-01, pp. 01, 01.01.2002.