Is a weak dollar good or bad for the economy? - Trading-Lab

rookie · #1 10-08-2007, 07:42 PM

was wondering whether the recent years' weakness in the US$ is considered good or bad for the economy, both US and global economy.

scalper · #2 10-15-2007, 01:06 PM

well, a weak US dollar increases our exports, as foreigners will spend less when they import stuff from the US, so theoretically, they should buy more. Increasing our exports, in turn, helps improving our balance of payments.

BlueChips · #3 10-16-2007, 01:10 PM

in my opinion, the strength of a currency should be regarded as a proxy for that currency's nation's standard of living. Think of it as a stock representing a company named America. When the value of the stock is up, the company is doing good. When the value of the stock is down.....

Leth · #4 10-16-2007, 03:08 PM

i was at the grocery store the other day and took a dollar bill from my wallet to pay for my can of Dr. Pepper....
i squashed the bill up in my hand and realized how weak it was...then i tried to pull the bill apart from the ends and realized how strong it was. after i paid for my beverage (which was tasty by the way), i decided i wanted to double all the money i had in my wallet. so, i took out the cash...folded it over...and stuck it in my front pocket. for some reason..i wasnt any richer, but it sure looked like i was.
thats about as far as my knowledge of the dollar in relation to the economy goes. as you can see...its not very far at all.
i do like what scalper and bluechips had to say about it though...thier analysis definately seems logical.

breakout · #5 10-18-2007, 04:25 PM

so you are implying the US is not doing that good recently? I don't see it that way. Devaluing a country's currency has always been used as an efficient way to help her get out of a slump.

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#1 10-08-2007, 07:42 PM
rookie Member Join Date: Jul 2007 Posts: 86	Is a weak dollar good or bad for the economy? was wondering whether the recent years' weakness in the US$ is considered good or bad for the economy, both US and global economy.

#2 10-15-2007, 01:06 PM
scalper Junior Member Join Date: Jun 2007 Posts: 29	well, a weak US dollar increases our exports, as foreigners will spend less when they import stuff from the US, so theoretically, they should buy more. Increasing our exports, in turn, helps improving our balance of payments. __________________ scalper

#3 10-16-2007, 01:10 PM
BlueChips Member Join Date: Jul 2007 Posts: 49	in my opinion, the strength of a currency should be regarded as a proxy for that currency's nation's standard of living. Think of it as a stock representing a company named America. When the value of the stock is up, the company is doing good. When the value of the stock is down.....

#4 10-16-2007, 03:08 PM
Leth Super Moderator Join Date: Oct 2007 Posts: 621	i was at the grocery store the other day and took a dollar bill from my wallet to pay for my can of Dr. Pepper.... i squashed the bill up in my hand and realized how weak it was...then i tried to pull the bill apart from the ends and realized how strong it was. after i paid for my beverage (which was tasty by the way), i decided i wanted to double all the money i had in my wallet. so, i took out the cash...folded it over...and stuck it in my front pocket. for some reason..i wasnt any richer, but it sure looked like i was. thats about as far as my knowledge of the dollar in relation to the economy goes. as you can see...its not very far at all. i do like what scalper and bluechips had to say about it though...thier analysis definately seems logical.

#5 10-18-2007, 04:25 PM
breakout Member Join Date: Jun 2007 Posts: 63	so you are implying the US is not doing that good recently? I don't see it that way. Devaluing a country's currency has always been used as an efficient way to help her get out of a slump.