--- title: "Meaning & Key Takeaway of: The more competitive value of the dollar…" description: "\"The more competitive value of the dollar turned around the trade deficit.\" — Martin Feldstein" image: "https://sms4smile.com/quotes/i/52e/martin-feldstein-21258_deficit_the-more-competitive-value-of-the-dollar_14557.jpg" --- # The more competitive value of the dollar turned around the… ![“The more competitive value of the dollar turned around the trade deficit.” quote by Martin Feldstein](https://sms4smile.com/quotes/i/52e/martin-feldstein-21258_deficit_the-more-competitive-value-of-the-dollar_14557.jpg) [Download](https://sms4smile.com/quotes/i/52e/martin-feldstein-21258_deficit_the-more-competitive-value-of-the-dollar_14557.jpg) [Open image](https://sms4smile.com/quotes/i/52e/martin-feldstein-21258_deficit_the-more-competitive-value-of-the-dollar_14557.jpg) > “The more competitive value of the dollar turned around the trade deficit.” [Martin Feldstein](https://sms4smile.com/quotes/author/martin-feldstein/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. A stronger dollar makes imports cheaper and exports less competitive, which can reduce a trade deficit but also harms domestic producers. **In simple terms:** Dollar strength impacts trade balance. Key Takeaway Currency strength reshapes trade dynamics. Themes macroeconomics exchange rates trade policy globalization Mood analytical cautious Type economic insight policy commentary When to use this quote - policy analysis - economic forecasting - business strategy Key Concepts currency valuation trade deficit competitiveness Practical Applications - adjusting export pricing - hedging currency risk Questions to Reflect On - How does currency strength affect domestic employment? - What policies can mitigate adverse trade impacts? A Different Perspective A stronger dollar can also attract foreign investment, offsetting some trade effects. ★ ★ ★ ★ ★ No ratings yet [Dollars](https://sms4smile.com/quotes/about/dollars/) [Trade](https://sms4smile.com/quotes/about/trade/) [Values](https://sms4smile.com/quotes/about/values/) ## Related quotes > [Although economists have studied the sensitivity of import and export volumes to changes in the exchange rate, there is still much uncertainty about just…](https://sms4smile.com/quotes/martin-feldstein/although-economists-have-studied-the-sensitivity-of-import-and-export/) [Martin Feldstein](https://sms4smile.com/quotes/author/martin-feldstein/) > [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…](https://sms4smile.com/quotes/martin-feldstein/to-finance-this-trade-deficit-the-u-s-has-to-borrow-from-the-rest-of/) [Martin Feldstein](https://sms4smile.com/quotes/author/martin-feldstein/) > [Unless the trade deficit shrinks, the combination of the trade deficit and the interest and dividend payments to foreigners will grow ever more rapidly.](https://sms4smile.com/quotes/martin-feldstein/unless-the-trade-deficit-shrinks-the-combination-of-the-trade-deficit/) [Martin Feldstein](https://sms4smile.com/quotes/author/martin-feldstein/) > [I've always known the value of a dollar.](https://sms4smile.com/quotes/alvin-kamara/i-ve-always-known-the-value-of-a-dollar/) [Alvin Kamara](https://sms4smile.com/quotes/author/alvin-kamara/) > [The value of a dollar is social, as it is created by society.](https://sms4smile.com/quotes/ralph-waldo-emerson/the-value-of-a-dollar-is-social-as-it-is-created-by-society/) [Ralph Waldo Emerson](https://sms4smile.com/quotes/author/ralph-waldo-emerson/) > [Americans have seen the value of the dollar slowly decline due to the steady erosion of inflation.](https://sms4smile.com/quotes/kevin-brady/americans-have-seen-the-value-of-the-dollar-slowly-decline-due-to-the/) [Kevin Brady](https://sms4smile.com/quotes/author/kevin-brady/) > [The value of a dollar is to buy just things; a dollar goes on increasing in value with all the genius and all the…](https://sms4smile.com/quotes/ralph-waldo-emerson/the-value-of-a-dollar-is-to-buy-just-things-a-dollar-goes-on/) [Ralph Waldo Emerson](https://sms4smile.com/quotes/author/ralph-waldo-emerson/) > [As money, Bitcoin achieves two objectives; it's both a unit of transaction as well as being a store of value. The U.S. dollar, for…](https://sms4smile.com/quotes/max-keiser/as-money-bitcoin-achieves-two-objectives-it-s-both-a-unit-of/) [Max Keiser](https://sms4smile.com/quotes/author/max-keiser/) > [They say kids today don't know the value of a dollar. They certainly do know the value of a dollar. That's why they ask…](https://sms4smile.com/quotes/robert-orben/they-say-kids-today-don-t-know-the-value-of-a-dollar-they-certainly/) [Robert Orben](https://sms4smile.com/quotes/author/robert-orben/) > [The proposal for a new global reserve currency - or Special Drawing Rights - is a good idea for many reasons. Yes, for the…](https://sms4smile.com/quotes/joseph-stiglitz/the-proposal-for-a-new-global-reserve-currency-or-special-drawing/) [Joseph Stiglitz](https://sms4smile.com/quotes/author/joseph-stiglitz/) > [We were spoiled in many ways, but we were always taught to understand the value of the dollar. If there was something we wanted,…](https://sms4smile.com/quotes/donald-trump-jr/we-were-spoiled-in-many-ways-but-we-were-always-taught-to-understand/) [Donald Trump, Jr](https://sms4smile.com/quotes/author/donald-trump-jr/) > [I think that I know the value of a dollar.](https://sms4smile.com/quotes/dolly-parton/i-think-that-i-know-the-value-of-a-dollar/) [Dolly Parton](https://sms4smile.com/quotes/author/dolly-parton/) > [Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology,…](https://sms4smile.com/quotes/ben-bernanke/like-gold-u-s-dollars-have-value-only-to-the-extent-that-they-are/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) > [Every dollar a foreigner spends over here directly subtracts a dollar from the trade deficit.](https://sms4smile.com/quotes/stephen-moore/every-dollar-a-foreigner-spends-over-here-directly-subtracts-a-dollar/) [Stephen Moore](https://sms4smile.com/quotes/author/stephen-moore/) > [That's the kind of thinking that our country needs. When we have a country that's doing so badly, that's being ripped off by every…](https://sms4smile.com/quotes/donald-trump/that-s-the-kind-of-thinking-that-our-country-needs-when-we-have-a/) [Donald Trump](https://sms4smile.com/quotes/author/donald-trump/) ## More by Martin Feldstein > [In short, both experience and economic theory imply that the US could now t to a more competitive dollar without experiencing either increased inflation…](https://sms4smile.com/quotes/martin-feldstein/in-short-both-experience-and-economic-theory-imply-that-the-us-could/) [Martin Feldstein](https://sms4smile.com/quotes/author/martin-feldstein/) > [Inflation is lower and more stable and the real business cycle fluctuations are more modest.](https://sms4smile.com/quotes/martin-feldstein/inflation-is-lower-and-more-stable-and-the-real-business-cycle/) [Martin Feldstein](https://sms4smile.com/quotes/author/martin-feldstein/) > [Increased government spending can provide a temporary stimulus to demand and output but in the longer run higher levels of government spending crowd out…](https://sms4smile.com/quotes/martin-feldstein/increased-government-spending-can-provide-a-temporary-stimulus-to/) [Martin Feldstein](https://sms4smile.com/quotes/author/martin-feldstein/) > [I think that over the last few decades, we have seen better economic outcomes than in the past.](https://sms4smile.com/quotes/martin-feldstein/i-think-that-over-the-last-few-decades-we-have-seen-better-economic/) [Martin Feldstein](https://sms4smile.com/quotes/author/martin-feldstein/) > [And finally, no matter how good the science gets, there are problems that inevitably depend on judgment, on art, on a feel for financial…](https://sms4smile.com/quotes/martin-feldstein/and-finally-no-matter-how-good-the-science-gets-there-are-problems/) [Martin Feldstein](https://sms4smile.com/quotes/author/martin-feldstein/) > [Thirty years ago, many economists argued that inflation was a kind of minor inconvenience and that the cost of reducing inflation was too high…](https://sms4smile.com/quotes/martin-feldstein/thirty-years-ago-many-economists-argued-that-inflation-was-a-kind-of/) [Martin Feldstein](https://sms4smile.com/quotes/author/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…](https://sms4smile.com/quotes/martin-feldstein/even-if-the-dollar-does-decline-during-the-coming-months-the-delays/) [Martin Feldstein](https://sms4smile.com/quotes/author/martin-feldstein/) > [First, I think the science of monetary economics has clearly gotten better.](https://sms4smile.com/quotes/martin-feldstein/first-i-think-the-science-of-monetary-economics-has-clearly-gotten/) [Martin Feldstein](https://sms4smile.com/quotes/author/martin-feldstein/) > [But because we in the United States finance our current account deficit by borrowing in our own currency, we can move to a more…](https://sms4smile.com/quotes/martin-feldstein/but-because-we-in-the-united-states-finance-our-current-account/) [Martin Feldstein](https://sms4smile.com/quotes/author/martin-feldstein/) > [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…](https://sms4smile.com/quotes/martin-feldstein/to-finance-this-trade-deficit-the-u-s-has-to-borrow-from-the-rest-of/) [Martin Feldstein](https://sms4smile.com/quotes/author/martin-feldstein/) > [We are particularly poor at the open economy issues.](https://sms4smile.com/quotes/martin-feldstein/we-are-particularly-poor-at-the-open-economy-issues/) [Martin Feldstein](https://sms4smile.com/quotes/author/martin-feldstein/) > [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…](https://sms4smile.com/quotes/martin-feldstein/but-then-in-april-of-1985-the-dollar-began-a-sharp-decline-the-dollar/) [Martin Feldstein](https://sms4smile.com/quotes/author/martin-feldstein/) > [We pay some price when necessary to bring down inflation but that price is temporary and is not large relative to the permanent gain…](https://sms4smile.com/quotes/martin-feldstein/we-pay-some-price-when-necessary-to-bring-down-inflation-but-that/) [Martin Feldstein](https://sms4smile.com/quotes/author/martin-feldstein/) > [A rise in the level of saving can reduce aggregate activity temporarily but only a sustained high level of saving makes it possible to…](https://sms4smile.com/quotes/martin-feldstein/a-rise-in-the-level-of-saving-can-reduce-aggregate-activity/) [Martin Feldstein](https://sms4smile.com/quotes/author/martin-feldstein/) > [The good news is that a competitive dollar in the global market and a strong dollar at home are compatible in both the long…](https://sms4smile.com/quotes/martin-feldstein/the-good-news-is-that-a-competitive-dollar-in-the-global-market-and-a/) [Martin Feldstein](https://sms4smile.com/quotes/author/martin-feldstein/) [Explore all 29 Martin Feldstein quotes ](https://sms4smile.com/quotes/author/martin-feldstein/) ## More Deficit quotes > [At times of recession, running a budget deficit is highly desirable. Once the economy begins to recover, you have to balance the budget. But…](https://sms4smile.com/quotes/george-soros/at-times-of-recession-running-a-budget-deficit-is-highly-desirable/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [There is a nationwide shortage of drugs for Attention Deficit Disorder. The FDA says they're not sure how it happened. I guess somebody wasn't…](https://sms4smile.com/quotes/jay-leno/there-is-a-nationwide-shortage-of-drugs-for-attention-deficit/) [Jay Leno](https://sms4smile.com/quotes/author/jay-leno/) > [Inflation is not caused by the actions of private citizens, but by the government: by an artificial expansion of the money supply required to…](https://sms4smile.com/quotes/ayn-rand/inflation-is-not-caused-by-the-actions-of-private-citizens-but-by-the/) [Ayn Rand](https://sms4smile.com/quotes/author/ayn-rand/) > [When you're talking about long-term deficit reduction, $4 trillion worth, entitlement reform needs to be part of it.](https://sms4smile.com/quotes/dick-durbin/when-you-re-talking-about-long-term-deficit-reduction-4-trillion/) [Dick Durbin](https://sms4smile.com/quotes/author/dick-durbin/) > [I cannot conceive of a politically feasible solution to this problem which will overdo cutting the deficit, where overdoing means harming the economy. It…](https://sms4smile.com/quotes/alan-greenspan/i-cannot-conceive-of-a-politically-feasible-solution-to-this-problem/) [Alan Greenspan](https://sms4smile.com/quotes/author/alan-greenspan/) > [The deficit crisis is real and must be addressed. But it cannot be solved on the backs of the weak and vulnerable.](https://sms4smile.com/quotes/bernie-sanders/the-deficit-crisis-is-real-and-must-be-addressed-but-it-cannot-be/) [Bernie Sanders](https://sms4smile.com/quotes/author/bernie-sanders/) > [You know, dramas are much more expensive to do than say a comedy, so any kind of deficit like that is picked up on…](https://sms4smile.com/quotes/paul-guilfoyle/you-know-dramas-are-much-more-expensive-to-do-than-say-a-comedy-so/) [Paul Guilfoyle](https://sms4smile.com/quotes/author/paul-guilfoyle/) > [The major cause for American Negroes intellectual and social deficits is hereditary and racially genetic in origin and thus not remedial to a major…](https://sms4smile.com/quotes/william-shockley/the-major-cause-for-american-negroes-intellectual-and-social-deficits/) [William Shockley](https://sms4smile.com/quotes/author/william-shockley/) > [Back in those days, in the fifties and sixties, countries had balance of payment's deficits or surpluses, those were reflected much more than today…](https://sms4smile.com/quotes/robert-c-solomon/back-in-those-days-in-the-fifties-and-sixties-countries-had-balance/) [Robert C. Solomon](https://sms4smile.com/quotes/author/robert-c-solomon/) > [I am a deficit hawk.](https://sms4smile.com/quotes/dick-cheney/i-am-a-deficit-hawk/) [Dick Cheney](https://sms4smile.com/quotes/author/dick-cheney/) > [What sets black people apart is not some deficit in personal responsibility. It's the weight on our shoulders. That is what's actually different. We…](https://sms4smile.com/quotes/ta-nehisi-coates/what-sets-black-people-apart-is-not-some-deficit-in-personal/) [Ta-Nehisi Coates](https://sms4smile.com/quotes/author/ta-nehisi-coates/) > [I will bring our energy companies back. They'll be able to compete. They'll make money. They'll pay off our national debt. They'll pay off…](https://sms4smile.com/quotes/donald-trump/i-will-bring-our-energy-companies-back-they-ll-be-able-to-compete/) [Donald Trump](https://sms4smile.com/quotes/author/donald-trump/) > [The company must be profitable. Preferably it will have increased its earnings for the past five years and there will have been no deficits…](https://sms4smile.com/quotes/peter-cundill/the-company-must-be-profitable-preferably-it-will-have-increased-its/) [Peter Cundill](https://sms4smile.com/quotes/author/peter-cundill/) > [No industry or country can reach its full potential until women reach their full potential. This is especially true of science and technology, where…](https://sms4smile.com/quotes/sheryl-sandberg/no-industry-or-country-can-reach-its-full-potential-until-women-reach/) [Sheryl Sandberg](https://sms4smile.com/quotes/author/sheryl-sandberg/) > [What works for Germany can't work for the rest of Europe: No country can run a chronic surplus without others running deficits.](https://sms4smile.com/quotes/george-soros/what-works-for-germany-can-t-work-for-the-rest-of-europe-no-country/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) Browse all 585 Deficit quotes ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "The more competitive value of the dollar turned around the trade deficit.", "creator": { "@type": "Person", "name": "Martin Feldstein" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/martin-feldstein/the-more-competitive-value-of-the-dollar-turned-around-the-trade/", "about": { "@type": "Thing", "name": "Deficit" }, "@id": "https://sms4smile.com/quotes/martin-feldstein/the-more-competitive-value-of-the-dollar-turned-around-the-trade/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/52e/martin-feldstein-21258_deficit_the-more-competitive-value-of-the-dollar_14557.jpg", "contentUrl": "https://sms4smile.com/quotes/i/52e/martin-feldstein-21258_deficit_the-more-competitive-value-of-the-dollar_14557.jpg", "url": "https://sms4smile.com/quotes/i/52e/martin-feldstein-21258_deficit_the-more-competitive-value-of-the-dollar_14557.jpg", "width": 1080, "height": 1080, "caption": "“The more competitive value of the dollar turned around the trade deficit.” — Martin Feldstein", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Martin Feldstein", "item": "https://sms4smile.com/quotes/author/martin-feldstein/" }, { "@type": "ListItem", "position": 4, "name": "The more competitive value of the...", "item": "https://sms4smile.com/quotes/martin-feldstein/the-more-competitive-value-of-the-dollar-turned-around-the-trade/" } ], "@id": "https://sms4smile.com/quotes/martin-feldstein/the-more-competitive-value-of-the-dollar-turned-around-the-trade/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```