Contents: (1) Intro.; (2) Broad Economic Forces That Affect the Dollar; (3) Determinants of the Size and Direction of Cross-Border Asset Flows: Interest Rate Differentials Between the U.S. and Other Economies; Investors¿ Expectations About the Future Path of the Dollar; Investors Diversifying Their Portfolio of Assets; Other Factors That Influence the International Demand for Dollar Asset; (4) Likely Effects of Dollar Depreciation (DD): A Smaller Trade Deficit; U.S. International Purchasing Power Decreases; World Commodity Prices Increase; (5) Other Possible Effects of DD: U.S. Interest Rates Could Increase; Dollar¿s Reserve Currency Role Could be Reduced; Risk of a Dollar Crisis; (6) Policies Influencing the Dollar. This is a print on demand report.

A trend depreciation of the dollar since 2002 raises concern among some in Congress and the public that the dollar's decline is a symptom of broader economic problems, such as a weak economic recovery, rising public debt, and a diminished standing in the global economy. However, a failing currency is not always a problem, but possibly an element of economic adjustments that are, on balance, beneficial to the economy. This book examines the economic context in which to view the dollar's recent and prospective movement, and analyses the evolution of the exchange rate since its peak in 2002. It also discusses several factors that are likely to influence the dollar's medium-term path, what effects a depreciating dollar could have on the economy, and how alternative policy measures that could be taken by the Federal Reserve and the Treasury might influence the dollar's path.

This report addresses the concern about the health of the U.S. economy regarding the depreciation of the dollar and examines the likely reasons for the dollar's fall, the effects the depreciating currency could have on the economy, and possible policy responses that could be considered to attempt to alter the dollar's path if needed.

The dollar rose by about 35 percent in real terms from 1995 through the end of 2001, supporting the booming US economy of the late 1990s but pushing the current account deficit to a record high of almost 5 percent of GDP. This special report provides alternative views of how large a dollar depreciation would be needed to restore a sustainable position (Jim O'Neill, Michael Rosenberg, and Catherine Mann), analyzes the impact of currency misalignments on each of the three major economies (Martin Baily for the United States, William Cline for Japan, and Daniel Gros for Euroland), and discusses the role of exchange market intervention in addressing the issues (Kathryn Dominguez, Edwin M. Truman, and Ernest Preeg).

The Economics of Inflation provides a comprehensive analysis of economic conditions in Germany under the Great Inflation and discusses inflationary conditions in general. The analysis is supported by extensive statistical material. * For this translation the author thoroughly revised the original work * Includes an appendix on German economic conditions in the years following the monetary reform, 1923-24

A fire sale of US debt could cause a global recession through disorderly devaluation of the dollar, raising interest rates and crashing stock markets. The G7 doctrine of shared responsibility intends to coordinate regional efforts. This book analyzes the main issues and individual regions, including China, Japan, the EU and the USA.

This report addresses the concern about the health of the U.S. economy regarding the depreciation of the dollar and examines the likely reasons for the dollar's fall, the effects the depreciating currency could have on the economy, and possible policy responses that could be considered to attempt to alter the dollar's path if needed.