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Weak Dollar Policy

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Weak Dollar Policy
The policy under which the U.S. government seeks to maintain a U.S. dollar that is worth less than other currencies. This makes U.S. products less expensive in other countries, which encourages exports. The U.S. pursues a weak dollar policy primarily by buying foreign debt. It carries the risk of leading to unsustainable debt and/or inflation.


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There is no easy route out of these kinds of issues, where you have an implicit weak dollar policy now in the U.
He concludes that the Fed should follow "a benign policy toward the dollar"--that is, "neither a strong nor a weak dollar policy.
We wish that Barack Obama had paid attention to that column because by reappointing Ben Bernanke as Fed chairman, he has endorsed one of the two people in Washington who were architects of that Bush weak dollar policy (with Alan Greenspan being the other).
 
 
 
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