When Should The Dollar be Strong or Weak?

link here to article

Christina Romer was on the Obama economics team where she was involved in developing its fiscal policy. In this article she discusses how the value of the dollar is determined on the foreign exchange market, and how its value is influenced by monetary policy and by fiscal policy. One of her points is that whether the dollar is strong or weak relative to other currencies depends on the state of the economy. Many in Congress understand that our trade deficit with China would be better if China allowed market forces to determine the relative value of the currencies. On the other hand, the same members of Congress prefer a strong dollar as a matter of national pride. We can't have it both ways. Government has to decide where it wants the dollar to be in terms of its current economic situation.