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

About Although Any Bring Change Changes Deficit Dollar Economists Exchange Export Given How Import Just Much Must Our Rate Reduction Sensitivity Still Studied Trade Uncertainty Volumes

Related Quotes

The more competitive value of the dollar turned around the trade deficit.

— Martin Feldstein

AroundCompetitiveDeficit

The only way that we can reduce our financial dependence on the inflow of funds from the rest of the world is to reduce our trade deficit.

— Martin Feldstein

DeficitDependenceFinancial

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

AprilBeganBeginning

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

CombinationDeficitEver

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

AccountAdverseBecause