On Mon, Nov 08, 2004 at 12:53:23PM -0500, Doug Henwood wrote:
> Wojtek Sokolowski wrote:
>
> A lot depends on what a falling dollar does to our trade balance. It
> could make imports more expensive and our exports less expensive. But
> if the action is mainly against the euro rather than the Chinese
> currency, then that effect could be mild. And a lot also depends on
> whether the U.S. starts to have problems funding the c/a deficit -
> which would force the Fed to raise interest rates more aggressively
> than it would otherwise, possibly pushing the economy into recession.
>
> It's hard to forecast how this could play out - there are too many variables.
>
> Doug
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-- Michael Perelman Economics Department California State University Chico, CA 95929
Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu