Dropping Dollar Boost U.S. Exports

By September 22, 2007Economy, Trade

The NAM’s chief economist, David Huether, was on Bloomberg TV yesterday, discussing the drop in the U.S. dollar against major currencies — a decline of about 20 percent since 2002. Huether disagrees with the description of the dollar as weak; it really has returned to the level of 1997, before it started to spike.

One beneficial effect has been strong exports, with growth outdoubling the pace of imports, and exports growth have occurred with respect to all the regions of the world, even Asia. All the more reason for Congress to enact the pending free trade agreements with Peru, Panama, Colombia and Korea. Trade is becoming a net positive for the U.S. economy, let’s help it stay that way.

To watch the Bloomberg clip, please click here.

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