Re: Is a cheaper dollar better?
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I guess better for exports not imports
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i.e. much better for net exports, which have been less negative for the past months.
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so would that not result in higher price
on goods imported into the country
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when import prices rise, we import less and usually export more (As that rise in price is usually the result in a falling dollar) and thus reduce the quantity and overall dollar value of the imports.
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not so good for consumers then?
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if those consumers desire to continual purchasing those same foreign goods imported to the US then certainly...
...and arguably in the long run even if only purchasing domestic things since domestic things many times require the input of foreign things.
america, however has a very strong competative/comparative advantage in managing finance/money and services(i.e. things that don't require other physically imported things to produce).
Barron
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