Unless the trade deficit shrinks, the combination of the trade deficit and the interest and dividend payments to foreigners will grow ever more rapidly. Martin Feldstein combinationdeficitdividend Change image and share on social
After all, an overvalued dollar gives us the ability to buy foreign goods at lower prices. And the existing volume of exports brings more yen and euros than they would if the dollar were more competitive. Martin Feldstein abilitybringbuy share on social
But because we in the United States finance our current account deficit by borrowing in our own currency, we can move to a more competitive dollar without the adverse effects that followed currency declines in other countries. Martin Feldstein accountadverseborrow share on social
Increased government spending can provide a temporary stimulus to demand and output but in the longer run higher levels of government spending crowd out private investment or require higher taxes that weaken growth by reducing incentives to save, invest, innovate, and work. Martin Feldstein crowddemandgovernment share on social
The more competitive value of the dollar turned around the trade deficit. Martin Feldstein competitivedeficitdollar Change image and share on social
So just as I want pilots on the planes that I fly, when it comes to monetary policy, I want to think that there is someone with sound judgement at the controls. Martin Feldstein controlflyjudgement Change image and share on social
Inflation is lower and more stable and the real business cycle fluctuations are more modest. Martin Feldstein businesscyclefluctuation Change image and share on social
If the Federal Reserve pursues a strong dollar at home while the dollar becomes more competitive in global markets, we can achieve both price stability and a more balanced path of economic growth. Martin Feldstein achievebalancecompetitive Change image and share on social
Although economists have studied the sensitivity of import and export volumes to changes in the exchange rate, there is still much uncertainty about just how much the dollar must change to bring about any given reduction in our trade deficit. Martin Feldstein bringchangedeficit share on social
