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Pros And Cons Of Having A Weak Dollar

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Pros And Cons Of Having A Weak Dollar
Eric McDevitt
Professor Freedman
Macro
MWF1
Strong and Weak Dollar “A falling dollar will mean a faster U.S. recovery” written by Martin Fledstein argues in favor of the weak United States Dollar while David Malpass argues in favor of the United States Dollar being strong. Both men present valid reasons as to why they believe the United States currently should be weak or strong compared to other countries’ currencies. This ongoing debate is extremely important because it reflects the United States economy. The United States Dollar is the most actively traded currency in the world and if we had a strong dollar there would be growth in the economy. The pros of having a strong dollar outweigh the pros of a weak dollar even though some people believe that a weak dollar solidifies the …show more content…
In the year 2013, the total number of bills exchanged with foreign countries was 5.02 trillion dollars. More than half of them were imported dollars that were being exchanged between the United States and foreign countries. With a strong dollar the economy would benefit immensely due to the value of our currency compared to the other countries currency. If the dollar was weak then it would create the cost of imports to increase and in turn make the prices of all the good we imported to increase for the consumers. The US being the largest importer means having a strong dollar is essential. China, the European Union, Canada, Mexico, and Japan are the main importers to the US. Having a strong dollar may reduce their profits, but the demand is so high that they couldn’t stop working with the US. When growth is strong you typically will see an increase in the value of the US
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