Word: dollarization
(lookup in dictionary)
(lookup stats)
Dates: during 1980-1989
Sort By: most recent first
(reverse)
Feldstein argues that the United States should not try to slow the dollar's fall by pegging it to other nation's currencies or by setting target ranges. In order to act with maximum efficiency, Feldstein believes the Federal Reserve Board should let markets determine the value of the dollar (however low that may be) and focus its monetary weapons on controlling inflation at home...
...Feldstein goes a step beyond a dispassionate economic argument by making his plan into a panacea for the trade deficit--when it's not. The United States could let the dollar fall to eliminate its huge trade deficit. As American goods get relatively cheaper and foreign goods more expensive, America will be selling more and buying less, until eventually our trading accounts balance. In fact, Bush may choose to follow this plan to eliminate the deficit...
...this approach sacrifices America's long term economic wellbeing and ignores the human cost of a lower dollar...
...advancing scientific research is to send spacecraft without astronauts off into different parts of the solar system, in a manner similar to the Voyager spacecraft. Because these spacecraft are inherently much less expensive, less complex and less risky than human-occupied craft, they provide more scientific returns per dollar investment...
...Government reduces its huge borrowing needs, "there is the risk of a real financial disturbance. It would bring about the kind of recession that would be the most difficult to handle." One way in which the deficit has triggered higher rates is by undermining foreign confidence in the dollar, which plunged more than 3% against the Japanese yen in the three weeks after the U.S. election. To stabilize the currency, the U.S. has had to allow interest rates to rise as an incentive to foreign investors...