Report Detail Summary

Is the Weak Dollar Inflationary or Does it Improve the Trade Balance? Part II

November 26, 2007

One simple way of identifying the likely winners and losers of a weaker dollar is to look back in time in order to identify the time periods of dollar appreciations and dollar depreciations. In Figure 1 we identify four different environments that should aid us in identifying the winners and losers from the environment that we foresee.

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