Many in the US and around the world equate a lower dollar with a weak economy. The article has some stats on inflation, on the US trade deficit and on GDP growth that make the case that there isn't such a direct relationship.

 

Submitted: Mar 7, 2008    Views: 205    Comments: 2    Likes: 1   


View Article: http://engram-backtalk.blogspot.com/2008/03/weak-dollar-and-america...


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Sam Cass
Sam_Cass

The problem I have with the exchange rate/inflation analysis, is that using CPI as a measure of inflation is flawed (Please see my article American Standard of Living in Decline for more on my inflation thoughts).

I also think the weak dollar is a consequence of the world moving away from doing business in dollars. As the dollar has weakened, the Euro has strongly challenged dollar dominance. Central banks around the world are dumping dollars for Euros. This does have a real impact on our economic and soft power.

Posted: Mar 7, 2008

Ron Shays

I need to go overseas and this is a disaster. I feel poor.

Posted: Mar 12, 2008



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