"The darling dollar"

The Economist, April 5, 2001

Synopsis: This article explains why the value of the dollar is still high against the euro. One of the reasons may be related to the dollar's traditional role as a safe-haven currency especially in an uncertain global economic climate. Another reason may stem from the relative productivity growth rates. The current economic slowdown in the U.S. may reduce the productivity gap between the U.S. and the euro area. In the long run, however, the productivity growth is expected to remain faster in the U.S, which may keep the strength of the dollar against the euro.

Full-text Article:
http://www.economist.com/printedition/displayStory.cfm?Story_ID=566283&CFID=467262&CFTOKEN=6567573

Text connection: Chapter 10 "The International Monetary System" (pp.317-323).

Return to This Week in Global News