The Dollar and the Deficits

How Washington Can Prevent the Next Crisis

Author: C. Fred Bergsten
November/December 2009
Foreign Affairs

The global economic crisis has revealed the folly of large U.S. budget and trade deficits, as well as of the strong dollar that makes them possible. If it is serious about recovery, the United States must balance the budget, stimulate private saving, and embrace a declining dollar.

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