Decline Quote by Martin Feldstein

“Even if the dollar does decline during the coming months, the delays in the response of exports and imports to the more competitive dollar will mean that the increase in aggregate demand from this source may not happen for a year or more.” quote by Martin Feldstein — Download Open image

“Even if the dollar does decline during the coming months, the delays in the response of exports and imports to the more competitive dollar will mean that the increase in aggregate demand from this source may not happen for a year or more.”

Martin Feldstein

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Decline Delay Demand Doe Dollars Imports Increase May Mean Months Response Source Years

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In short, both experience and economic theory imply that the US could now t to a more competitive dollar without experiencing either increased inflation…

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The more competitive value of the dollar turned around the trade deficit.

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Inflation is lower and more stable and the real business cycle fluctuations are more modest.

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I think that over the last few decades, we have seen better economic outcomes than in the past.

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And finally, no matter how good the science gets, there are problems that inevitably depend on judgment, on art, on a feel for financial…

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Thirty years ago, many economists argued that inflation was a kind of minor inconvenience and that the cost of reducing inflation was too high…

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First, I think the science of monetary economics has clearly gotten better.

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But because we in the United States finance our current account deficit by borrowing in our own currency, we can move to a more…

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To finance this trade deficit, the U.S. has to borrow from the rest of the world or sell American assets like stocks, businesses, and…

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We are particularly poor at the open economy issues.

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But then in April of 1985 the dollar began a sharp decline. The dollar's trade weighted value fell 23 percent in just 12 months…

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To my way of thinking, the American family started to decline when parents began to communicate with their children.

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Deflation means a slowdown of income growth. Markets shrink, new capital investment and employment also taper off, so wages decline. That is what's happening…

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