HKS Affiliated Authors

Excerpt

A Strong Dollar Is a Sign of a Strong Economy. Jeffrey Frankel, March 23, 2015, Opinion. "Any movement in the exchange rate has pros and cons. When the dollar appreciates as much as it has over the last year, the obvious disadvantage is that the loss in competitiveness by U.S. producers hits exports and the trade balance. But if the dollar had fallen by a similar amount, there would be lamentations over the debasing of the currency. Overall, the strong dollar is good news. This is because of the macroeconomic fundamentals behind it. Indeed textbook theories explain this episode unusually well..." Link