With the rupee trading at or near all-time lows and the Reserve Bank of India’s real effective exchange rate at all-time lows, the 2022-2024 de-facto exchange rate peg maintained by the RBI has ended. … READ MORE >
U.S. dollar
Identifying countries at risk as the U.S. dollar surges
This rise in the dollar will cause economic challenges around the world, with those in the emerging markets likely to face greater adjustment problems as they face a rising cost of external debt paid in dollars. … READ MORE >
Servicing external debt in a strong-dollar environment
The dollar’s strength is coming at price for emerging markets, which must pay more to service their external debt. … READ MORE >
Global currency reserves: BRIC economies not supplanting U.S. any time soon
O about $12.5 trillion in total global currency reserves, China accounts for but a fraction with $245 billion. The United States, by contrast, accounts for $6.67 trillion. … READ MORE >
A nascent dollar bloc: Re-globalization amid U.S.-Chinese tensions
We see a nascent dollar trading bloc forming out of need to protect essential industries. … READ MORE >
American outperformance in the global economy
The U.S. economy is outperforming in growth and employment, and in controlling inflation, without causing the economy to fall into an extended period of slow growth. It’s a remarkable policy achievement. … READ MORE >
Why a strong dollar is in America’s best interests
A strong dollar not only means that there is a healthy demand for American-made goods and services, but, perhaps more important, it is also a show of confidence in the U.S. government and financial institutions. … READ MORE >
Intervening in foreign exchange markets: The poverty of dollar devaluation
We think intervening to devalue the dollar would be folly. In the end, the result would be upward pressure on prices, reduced demand and, ultimately, a slowing economy. … READ MORE >
U.S. economic outlook: Expansion continues into 2024
Expect the economy to settle into its long-term growth rate of around 1.8% next year. Read our forecasts for growth, inflation, unemployment, the dollar, interest rates and fiscal policy. … READ MORE >
Dollar ascendant? Why the dollar’s dominance will not fade.
The idea that the global economy can be organized around another currency seems out of place given the dollar’s ascendancy over the past 10 years during a period of uncertainty. … READ MORE >