Making Sense of the Dollar: Exposing Dangerous Myths about Trade and Foreign Exchange

IS THE DOLAR LOSING ITS LUSTER AS A WORLD CURENCY? Has the credit crisis forever tainted the U.S. dollar? Will the euro or the yuan replace the U.S. dollar as the world's currency? Marc Chandler argues convincingly that many people are wrongly pessimistic about both the dollar and the U.S. economy. The United States remains a vibrant and innovative country despite the severe credit crisis. In Making Sense of the Dollar, Chandler acknowledges the existence of trade deficits while advising against sacrificing growth and development. Investors and policy makers need to think about money and trade in a different way. He casts a critical eye at ten myths that contribute to our misperceptions: Trade deficits reflect a lack of U.S. competitiveness There is only one type of capitalism Globalization destroyed American industry The era of the dollar as the global currency is ending A weak dollar boosts exports and drives stock markets These assumptions and others are debunked by Chandler. His inescapable conclusion is that both the dollar and the U.S. economy are much stronger than many people suppose, even in the face of market turmoil and economic displacement. The new rules that emerge from the credit crisis will undoubtedly create new incentives and disincentives, which, in turn, could influence the contours of U.S. strategy for economic expansion.…