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A strong dollar also reduces export, so how does this pan out net-net?
by throwaway40483 10y ago
A strong dollar also reduces export, so how does this pan out net-net?
- pyromine 10y agoJust saw this, but American consumers are more sensitive to import prices than export, because consumers generally do not directly receive the proceeds of exports. Net-net, it'd be hard to say what happens long term in the economy because that has a lot to do with long-term changes in the macro environment, if economic growth remains strong consumers will continue to make out better, if the strong dollar ultimate hurts the economy (and that isn't impossible), a weakening economy hurts consumers more than the stronger dollar.