Economic policy and manufcaturing

While any American who is vacationing overseas this year would not agree that the Dollar to Euro exchange rate is at a good level, it appears that the U.S. manufacturing sector would disagree.  While I don;t like the idea of a weak dollar in the global currency market, I do like the idea of cheaper American goods on the world market and more American manufacturing jobs.  Hopefully the benefits will eventually outweigh the costs.
Euro vs. Dollar: More factories may be U.S.-bound – Autoblog






One response to “Economic policy and manufcaturing”

  1. Morrison Bonpasse Avatar

    The fluctuations of currencies should bring an equal number of winners and losers, but the exporters are usually more organized so there is a sense that a “weak” currency is better for a country. Hence the current concern in France about the high value of the euro.
    Howver, EVERY country cannot have a “weak” currency, so there is always concern that some countries are manipulating the system better than others.
    The long term answer is a Single Global Currency managed by a Global Central Bank within a Global Monetary Union.
    The Single Global Currency will bring huge benefits to the world:
    – Annual foreign exchange transaction costs of $400 billion will be eliminated.
    – Worldwide asset values will increase by about $36 trillion.
    – Worldwide GDP will increase by about $9 trillion.
    – Global currency imbalances will be eliminated.
    – All Balance of Payments problems will be eliminated.
    – Currency crises will be prevented.
    – Currency speculation will be eliminated.
    – Currency fluctuations, and the need for hedging, will be eliminated.
    – The need for foreign exchange reserves, now over $4.3 trillion, will be eliminated and these funds can be used for more productive purposes than maintaining an inefficient foreign exchange system.
    If a monetary union in Europe works well (still an issue for a number of economists) for 13 countries, soon to be 15 and then 22, then why not plan now for a monetary union for 192 countries?
    For more information, please visit the website of the Single Global Currency Assn. at Our goal is implementation by 2024 and we published the book, “The Single Global Currency – Common Cents for the World” and invite comments, suggestions and criticisms.

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