Even if the dollar does decline during the coming months, the delays in the response of exports and imports to the more competitive dollar will mean that the increase in aggregate demand from this source may not happen for a year or more. Martin Feldstein aggregatecomecompetitive share on social
Homeowners who refinanced their mortgages took out cash and reduced their monthly payments at the same time. Much of the cash obtained by refinancing was spent on consumer durables, home improvements and the like. Martin Feldstein cashconsumerdurable share on social
But then in April of 1985 the dollar began a sharp decline. The dollar's trade weighted value fell 23 percent in just 12 months and by a total of 37 percent by the beginning of 1988. Martin Feldstein aprilbegindecline Change image and share on social
First, I think the science of monetary economics has clearly gotten better. Martin Feldstein economicsmonetaryscience Change image and share on social
Thirty years ago, many economists argued that inflation was a kind of minor inconvenience and that the cost of reducing inflation was too high a price to pay. No one would make those arguments today. Martin Feldstein agoargueargument Change image and share on social
We pay some price when necessary to bring down inflation but that price is temporary and is not large relative to the permanent gain from reduced inflation. Martin Feldstein bringgaininflation Change image and share on social
And finally, no matter how good the science gets, there are problems that inevitably depend on judgement, on art, on a feel for financial markets. Martin Feldstein artdependfeel Change image and share on social
Domestic inflation reflects domestic monetary policy. Martin Feldstein domesticinflationmonetary Change image and share on social
We are particularly poor at the open economy issues. Martin Feldstein economyissueopen Change image and share on social
But the primary reason for wanting the dollar to become more competitive in the near future is that we may need an increase in exports this year and in 2007 to sustain the economy's current pace of expansion. Martin Feldstein competitivecurrentdollar share on social
