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 [EMAIL PROTECTED]
