To: 1rudeboy
Does the falling dollar help to increase our exports and reduce our imports? I don't see that mentioned in the article.
3 posted on
11/12/2004 6:46:22 AM PST by
bankwalker
(Katie's legs are the reason God created the mute button.)
To: bankwalker
Theoretically, a falling dollar raises exports and reduces imports.
7 posted on
11/12/2004 6:51:27 AM PST by
1rudeboy
To: bankwalker
A lower U.S. dollar makes your exports more competitive price-wise with Canada and the E.U. This is good for the U.S. manufacturing sector, likely will result in job creation.
Another good trade-off is that imported cars will be more expensive than before, resulting in growth among domestics (GM, Ford).
On the flip-side, it will be more expensive for Americans to travel abroad. There's always trade-offs when it comes to changes in the value of the dollar. Some good, some bad.
12 posted on
11/12/2004 7:02:20 AM PST by
balk
(Martin's goin' down (just you wait!))
To: bankwalker
"Does the falling dollar help to increase our exports and reduce our imports?"
- Yes, it does and it's widely believed that Treasury is deliberately letting the dollar drop to do just that. That's why the article is unintentionally funny when it goes on to talk about the falling dollar as an almost unrelated concern.
Don't forget, that while the falling dollar helps the balance of payment deficit, it also hurts French and German exports to the US which I'm sure hasn't escaped their notice. Just another little knee in the groin from Bush to our EU "allies" in time for the holiday buying season.
To: bankwalker
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