Among the more striking international economic developments over the past year has been the marked appreciation of the US dollar. US policymakers would be ignoring this development at their peril. Since not only is the recent sharp dollar appreciation likely to both dampen US economic growth and reduce inflation; it is also all too likely to be a harbinger of further significant dollar appreciation in the months ahead that could have a material impact on the US economic outlook.Since August 2014 alone, the US dollar has appreciated by around 15 percent against a basket of currencies. Particularly striking has been …read more
Source: American Enterprise Institute for Public Policy Research