Long term effects of high unemployment and a weak dollar thank you paul maraman omaha nebraska?

1 ANSWERS

1. Guest2286
   

   I personally think the main effect a weaker dollar will have is that a weaker dollar is a crude cure for deflation. Since commodity prices from food stuffs to oil and industrial metals are all priced in dollars, a weak greenback means commodity prices go higher. This puts upward pressure on inflation and, more importantly, it helps keep consumers’ price expectations in positive territory, which avoids the negative growth spiral I mentioned before. It should also eventually lead to higher stock prices, which boosts investor confidence.

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