ALSO OF INTEREST

The dollar rose by about 35 percent in real terms from 1995 through the end of 2001, supporting the booming US economy of the late 1990s but pushing the current account deficit to a record high of almost 5 percent of GDP. This special report provides alternative views of how large a dollar depreciation would be needed to restore a sustainable position (Jim O’Neill, Michael Rosenberg, and Catherine Mann), analyzes the impact of currency misalignments on each of the three major economies (Martin Baily for the United States, William Cline for Japan, and Daniel Gros for Euroland), and discusses the role of exchange market intervention in addressing the issues (Kathryn Dominguez, Edwin M. Truman, and Ernest Preeg).

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Contents

Preface

Overview

1. Features of a Dollar Decline 545.0KB
Jim O'Neill

2. The Dollar's Equilibrium Exchange Rate: A Market View 637.9KB
Michael R. Rosenberg

3. How Long the Strong Dollar? 1.2MB
Catherine L. Mann

4. The Dollar and US Trade Politics 104.8KB
I.M. Destler

5. Persisten Dollar Swings and the US Economy 890.0KB
Martin Neil Baily

6. Impact of the Strong Dollar on the US Auto Industry 338.0KB
G. Mustafa Mohatarem

7. The Overvalued Dollar and the US Slump 367.3KB
Thomas I. Palley

8. All Eyes on the Dollar 341.8KB
Stephen S. Roach

9. The Impact of US External Adjustment on Japan 467.5KB
William R. Cline

10. The Dollar and the European Economy 211.6KB
Daniel Gros

11. Foreign Exchange Intervention: Did It Work in the 1990s? 1.1MB
Kathryn M. Dominguez

12. The Limits of Exchange Market Intervention 267.6KB
Edwin M. Truman

13. Exchange Rate Manipulation to Gain an Unfair Competitive Advantage: The Case Against Japan and China 233.4KB
Ernest H. Preeg

About the Contributors

Index