But the dollar’s fall was supposed to increase exports

While the mainstream seems to have viewed the fall in the dollar’s value as a bad thing, a few economists have argued that this would make US-manufactured products more competitive in foreign markets, thus at least softening the blow of what more and more people seem to agree is an impending recession. Others have pointed out that even domestic manufacturers rely on imported parts, mitigating the effects of a lower dollar.

But manufacturing has apparently decreased in December. Oil prices briefly reached $100 per barrel, and stocks slid; the Dow Jones closed down 220.86. Release of Federal Reserve minutes showing concern about the economy only enhanced the pessimism.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.