Why is the dollar so high?'
In this paper, Martin Feldstein, once considered a frontrunner to replace Alan Greenspan as chairman of the US Federal Reserve, argues that a decline of the real value of the dollar that is large enough to reduce the current account deficit significantly requires a large decline in the nominal value of the dollar.
Feldstein, who is the George F. Baker Professor of Economics at Harvard University argues that "the high level of the dollar is necessary to generate the current account deficit equal
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