Dollar Diplomacy

[Enrique Diaz-Alvarez]

Doug Henwood wrote:
> 
> One is that while the exchange rate - if you take it to be the
> macro price of a country's goods on world markets - is determined by
> competitive forces in markets for traded goods.

This may be a stupid question, but why would making more stuff per hour
worked make the stuff you make more expensive (i.e., make your currency
go up) in markets for traded goods?

-- 
Enrique Diaz-Alvarez            Office # (607) 255 5034	
Electrical Engineering          Home #   (607) 272 4808
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