Goldman Sachs: scrap the strong dollar policy

Lawrence lawrence at krubner.com
Fri Aug 3 21:19:03 PDT 2001


From: "Doug Henwood" <dhenwood at panix.com>
> Amazing news: Goldman Sachs, former home of Robert Rubin, leading
> architect of the Clinton administration's strong dollar policy, now
> says:
> "The time has come to scrap the strong dollar policy. ...
> To quote JFK, this is almost like L'Osservatore Romano criticizing the
Pope.

Two questions:

1.) You would agree that this is true, yes? A weak dollar would stimulate demand for American exports and help the American economy? A strong dollar during the boom helped dampen inflationary pressures?

2.) Why do you think they are doing this? Do you think this is their honest opinion, how they really feel, or do you feel this release is some kind of political play? Why would a financial firm ever want their home country's currency to go down? Could they have large foreign holdings they'd like to get out of? Or do they hope that stimulating demand would bring back the stock market?



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