Dollar Down, Trade Up
Federal Reserve Chairman Alan Greenspan said the dollar’s falling value should eventually help curb huge U.S. trade deficits without leading to a major disruption in the economy. Greenspan, speaking on March 2 to the Economic Club of New York, said foreign producers are exporting fewer goods to the United States. He said he does not believe heavy currency intervention by Asian countries, including Japan and China, has driven the value of the euro up against the dollar, despite complaints by European nations that it was happening and threatening their economic recovery.
