Reliant on foreign inflows

- By FX Markets Staff
- @FXMarkets_
- 21 Oct 2002

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The strong dollar policy has been successful now for over seven years, keeping both inflation and interest rates low while at the same time encouraging economic growth and foreign investment. Like many nations, the US has viewed a strong currency as an asset from a policy perspective, benefiting the public welfare, as foreign investment supports higher levels of domestic borrowing and consumption.

However, a strong dollar has also stimulated a record current account deficit that New York Federal

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