Stop Worrying About Unemployment, Worry Instead About the Dollar or Inflation

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We don't have inflation and the near term threat of inflation is remote. The dollar has fallen in value relative to the Euro so we should also worry about the dollar. Why worry about these non-threats? It may be because it stops us from worrying about unemployment.

This article compares the price of the dollar versus other currencies over time. It has fallen in value to the pre-crisis level. This is partly due to actions taken by he ECB to raise interest rates and encourage purchase of the Euro. The fall in the dollar recently is much lower than it was during the Bush administration when it received little attention. Moreover, a lower priced dollar does no harm to those who purchase in dollars but it does hurt speculators who borrowed in foreign currencies. It also makes US products less costly and it encourages exports which might improve of tread balance.