The more competitive value of the dollar turned around the trade deficit. Martin Feldstein Read Quote
The good news is that a competitive dollar in the global market and a strong dollar at home are compatible in both the long run and during the transition to a more competitive dollar. Martin Feldstein Read Quote
But because we in the United States finance our current account deficit by borrowing in our own currency, we can move to a more competitive dollar without the adverse effects that followed currency declines in other countries. Martin Feldstein Read Quote
So just as I want pilots on the planes that I fly, when it comes to monetary policy, I want to think that there is someone with sound judgement at the controls. Martin Feldstein Read Quote
If the Federal Reserve pursues a strong dollar at home while the dollar becomes more competitive in global markets, we can achieve both price stability and a more balanced path of economic growth. Martin Feldstein Read Quote
An increase in the relative price of products from the low wage manufacturers in Asia and Latin America will also make those products less attractive to American consumers. Martin Feldstein Read Quote
Although economists have studied the sensitivity of import and export volumes to changes in the exchange rate, there is still much uncertainty about just how much the dollar must change to bring about any given reduction in our trade deficit. Martin Feldstein Read Quote
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 real estate to the rest of the world. Martin Feldstein Read Quote