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The Dollar and US Exports
The current credit crisis will accelerate the improvement that is already occurring in our international trade balance. The dollar is already significantly undervalued relative to the currencies of many of our trade partners. But, any successful effort to use our usual approaches to monetary policy to restore the growth of domestic demand will lead to worsened inflation and renewed trade problems during the next business cycle. Perhaps it is time to change the approach...

The Dollar and U.S. Exports - 03.13.08




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