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Re: Protectionism US style



On Thu, 9 May 2002, Joseph Stiglitz was quoted as saying:

> Many of America's problems are made in USA. America's deteriorating
> fiscal position is leading to a strong dollar, just as the deteriorating
> fiscal position of the US after Reagan's irresponsible tax cut of two
> decades ago did.

Theoretically speaking, how does a deteriorating fiscal position lead to a
strong dollar? And as a statement of fact, isn't this future progressive
tense -- implying that the dollar will get stronger from here on -- a
little questionable just right now?

Michael




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