TITLE

Does Exchange-Rate Management Have a Role in the U.S. Macro- Policy Tool Kit?

AUTHOR(S)
Rosenberg, Michael R.
PUB. DATE
July 2004
SOURCE
Business Economics;Jul2004, Vol. 39 Issue 3, p12
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Given the rather large swings that the dollar has undergone in recent years, a number of observers are arguing that policy steps should be undertaken to stabilize the dollar around present levels. We make the case that exchange-rate management should not play a role in the U.S. macro-policy tool kit and, indeed, argue that the United States needs to convince policymakers overseas to allow their currencies to contribute to the U.S. trade-adjustment process. We show that the dollar needs to fall further, and likely quite sharply, in order to promote an orderly return of the U.S. current-account deficit to a sustainable level.
ACCESSION #
14072229

 

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