Making Sense of the Dollar

Has the greenback really lost its preeminent place in the world? Not according to currency expert Marc Chandler, who explains why so many are—wrongly—pessimistic about both the dollar and the U.S. economy.   Making Sense of the Dollar explores the many factors—trade deficits, the dollar’s role in the world, globalization, capitalism, and more—that affect the dollar and the U.S. economy and lead to the inescapable conclusion that both are much stronger than many people suppose.   Marc Chandler has been covering the global capital markets for twenty years as a foreign exchange strategist for several Wall Street firms. He is one of the most widely respected and quoted currency experts today.

Acknowledgments xi Introduction xiii 1 Myth 1: The Trade Deficit Reflects U.S. Competitiveness 1 2 Myth 2: The Current Account Deficit Drives the Dollar 21 3 Myth 3: You Can’t Have Too Much Money 39 4 Myth 4: Labor Market Flexibility is the Key to U.S. Economic Prowess 57 5 Myth 5: There Is One Type of Capitalism73 6 Myth 6: The Dollar’s Privileged Place in the World is Lost 91 7 Myth 7: Globalization Destroyed American Industry 111 8 Myth 8: U.S. Capitalist Development Prevents Socialism 133 9 Myth 9: The Weak U.S. Dollar Boosts Exports and Drives Stock Markets 155 10 Myth 10: The Foreign Exchange Market is Strange and Speculative 173 11 Summary and Some Thoughts on the Way Forward 191 Bibliography 203 Index 206