Weakening Dollar

Weakening Dollar - EC 202 Weakening Dollar Article 12/01/06...

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EC 202 Weakening Dollar Article 12/01/06 Henry M Paulson is the current Treasury Secretary for our country. His job is becoming more delicate as the dollar continues to slide against European and British currency. John Snow was the former head of Paulson’s position as Treasury Secretary, and the two seem to be following similar paths. The dollar has dropped a total of 6.7% over the past year and continues to drop. Recently, it hit a 20-month low compared with the Euro and 14-year low against the British pound. This poses a tricky situation for all economic officials involved, because is the dollar drops too low too fast; there will be a crash in the market. However, it has the possibility to help deflate our trade deficit. That would be possible because as the dollar weakens, American goods bought abroad and foreign goods more costly to Americans. The Treasury is happy as the dollar gradually declines; however, the Secretary says that a strong dollar is in our nation’s interest and the U.S. economy has a lot of
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Weakening Dollar - EC 202 Weakening Dollar Article 12/01/06...

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