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A Weak Dollar Will Not Make America Great

A Weak Dollar Will Not Make America Great
U.S. dollar bank notes at the Korea Exchange bank in Seoul, South Korea, in this file photo. A stronger dollar is better for the domestic economy. Chung Sung-Jun/Getty Images
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The U.S. dollar has become the safest asset, in the face of mounting evidence that competitive devaluations and drowning structural problems in liquidity are coming to a close.

The U.S. dollar is strengthening because of the evidence of a deeper slowdown in China and the massive imbalances built by some emerging economies in the past—large fiscal and trade deficits financed with the cheap inflow of dollars.

Daniel Lacalle
Daniel Lacalle
Author
Daniel Lacalle, Ph.D., is chief economist at hedge fund Tressis and author of the bestselling books “Freedom or Equality” (2020), “Escape from the Central Bank Trap” (2017), “The Energy World Is Flat”​ (2015), and “Life in the Financial Markets.”
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