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Economic Commentary

A Correct Value for the Dollar?

The dollar’s rapid appreciation in foreign-exchange markets between mid- 1980 and February 1985 greatly reduced the international competitiveness of many U.S. industries, contributed to unemployment in the trade-sensitive sectors of the economy, and heightened calls for protectionist legislation. Although the dollar has since depreciated in foreign-exchange markets, many analysts contend that it remains “overvalued” or “too high.”

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. This paper and its data are subject to revision; please visit for updates.

Suggested Citation

Humpage, Owen F., and Nicholas V. Karamouzis. 1986. “A Correct Value for the Dollar?” Federal Reserve Bank of Cleveland, Economic Commentary 1/1/1986.