Dollar’s Decline Brings Troubles
Published: October 18, 2009
http://www.nytimes.com/2009/10/19/business/global/19dollar.html?hp
Due to economic crisis among other factors, the US dollar, which used to rule the currency world as one of the most valuable currencies, has declined recently over the years. Specifically, the dollar’s 16 percent decline since March has made headlines. Last week the dollar neared $1.50 against the euro, compared with $1.25 in March. This brings about many consequences. For the bad part, this drop could force American consumers to get used to paying more for many imported goods as well as trips to their favorite vacation spots. There is one good side of this downturn though. The positive part is that this in fact helps american exporters. A weak dollar could be beneficial to the American economy by helping long-suffering manufacturers, rebuilding a stronger industrial base and improving exports even if it makes life harder for trading partners around the world, especially in Europe. Over the long time, a weaker dollar could close the United States’s long-running trade deficit, helping decrease the gap between exports and imports, and this could mean American products can become more affordable overseas. While some people find this change helpful or necessary for balance, critics say it points to a weaker america. While the White house says they support a strong dollar, they currently make no progress in doing so.
http://www.nytimes.com/2009/10/19/business/global/19dollar.html?hp
Due to economic crisis among other factors, the US dollar, which used to rule the currency world as one of the most valuable currencies, has declined recently over the years. Specifically, the dollar’s 16 percent decline since March has made headlines. Last week the dollar neared $1.50 against the euro, compared with $1.25 in March. This brings about many consequences. For the bad part, this drop could force American consumers to get used to paying more for many imported goods as well as trips to their favorite vacation spots. There is one good side of this downturn though. The positive part is that this in fact helps american exporters. A weak dollar could be beneficial to the American economy by helping long-suffering manufacturers, rebuilding a stronger industrial base and improving exports even if it makes life harder for trading partners around the world, especially in Europe. Over the long time, a weaker dollar could close the United States’s long-running trade deficit, helping decrease the gap between exports and imports, and this could mean American products can become more affordable overseas. While some people find this change helpful or necessary for balance, critics say it points to a weaker america. While the White house says they support a strong dollar, they currently make no progress in doing so.
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