Re: Re: Protectionism US style

[Michael Perelman <michael@xxxxxxxxxxxxxxxxx>]

deficits => high interest rates => strong dollar.


On Mon, May 13, 2002 at 02:58:37AM -0400, Michael Pollak wrote:
>
> 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
>

--
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael@xxxxxxxxxxxxxxxxx