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Question: Why is the Bush administration pursuing a weak dollar policy? I understand that a weak dollar favors imports, but it seems as though a weak dollar is also detrimental to just about everything and everyone else. Can someone knowledgeable please explain to me the different mechanisms by which the current administration is pursuing a weak dollar policy and the goals that the administration hopes to achieve through such a policy? Thanks!

Answer: a weak dollar doesn't favour imports... it makes it imports more expensive and so imports should go down.. The bush administration has always thought its dollar was too high, esp compared to China which it believes to have an artificially low currency. A lower US dollar should decrease imports and help re-balance the biggest balance of payments problem in the world by decreasing foreign imports and boost US exports to the world.


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