THE REVIVAL OF DECLINING DOLLAR

The Revival of Declining Dollar

The Revival of Declining Dollar

Introduction

Much recent attention has been given to the issue of the falling or weak U.S. dollar. Politicians discuss it in debates, tourists lament it when they travel and companies make long-term strategic decisions based on the direction they believe the dollar will move. (Bergsten & Williamson 2003)US dollar declines, US importers have to pay more for imported goods. The result will be a contraction of US trades from abroad. On the other hand, in the intermediate period, the discounted US dollar will commanded to a foreign investment rise ...