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Friday, May 6, 2011

Treasury Secretary Gives Mixed Signals on Dollar


“When Treasury Secretary Timothy F. Geithner was asked last week whether the dollar’s speedy decline in recent months reflected a deliberate government strategy, he answered with the kind of language used by a generation of Treasury secretaries. ‘Our policy has been and always will be, as long as at least I’m in this job, that a strong dollar is in our interest as a country,’ Geithner said in a forum at the Council on Foreign Relations. ‘We will never embrace a strategy of trying to weaken our currency to try to gain economic advantage.’ Flash forward. Geithner will meet Monday with Chinese officials in Washington and try to persuade them to let the value of their currency rise relative to the dollar in part as a way of lifting U.S. trade. That would, by the simple math of foreign exchange markets, weaken the dollar — in pursuit of economic advantage.” (Washington Post)

So which is it?

FEE Timely Classic
“Some Evils of Inflation” by Hans F. Sennholz