The Traderszone Network

Published in TZ Latest News 8 February, 2017 by The TZ Newswire Staff

Is a strong dollar good?

Here’s Tyler Cowen:

Is a strong dollar better than a weak dollar?

Yes, for Americans though not for the world as a whole.  For the relevant thought experiment, assume an exogenous shift in noise trading boosts the value of the dollar.  That increases the wealth of individuals and institutions that are long dollars, and presumably this is the case for this country overall.  If you owned lots of ponies, would you not want the price of ponies to go up?

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