Weak Dollar Policy

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.
References in periodicals archive ?
Dollar may continue to remain weak as Trump is expected to pursue a weak dollar policy in the face of a currency war with China.
'The US is implicitly moving towards a weak dollar policy with its unwillingness to condone other currencies' weakness against the dollar,'' said Prasad, author of The Dollar Trap.
The Donald Trump administration is maintaining the weak dollar policy, under a temporary endorsement by China, Japan and the EU.
"There is no easy route out of these kinds of issues, where you have an implicit weak dollar policy now in the U.S ...
He concludes that the Fed should follow "a benign policy toward the dollar"--that is, "neither a strong nor a weak dollar policy."