Declining Dollar Helps Exports

Does it seem possible that a falling dollar could actually help the economy? Well it helps exports at least. Nelson D. Schwartz from The New York Times writes in his article,

...A weak dollar could prove beneficial to the American economy by aiding long-suffering manufacturers, rebuilding a stronger industrial base and lifting exports even if it makes life harder for trading partners around the world, especially in Europe.

One point was that while it helps exports for the US, the decline in the value of the dollar hurts countries like Europe. Jens Nagel, head of the international department of the German Exporters Association in Berlin says that "The strength of the euro is coming at absolutely the wrong time".

This has had the opposite effect on imports however, because it drives up the prices of imported foreign goods. While the decline in the dollar has helped some aspects of the economy, it still has a large negative impact.