Why Is the U.S. Dollar So Strong? Will It Continue?
Money For the Rest of Us
US Dollars and the Global Economy
In theory, allowing a currency to fluctuate gives the country more flexibility. Capital is attracted to areas that have the highest risk adjusted interest rates. Right now, as we pointed out, the policy rate in us. Is much higher compared to other developed countries. What's fascinating though is the us. Economy continues to shrink relative to the rest of the world. Its relative weight. In 19 92, the united states accounted for just about 20 % of world g GDP. And by 20 20 oe, the us. Gdp had shrunk to just about 16 % of world's gDP,. while emerging markets had increased to close to 58%.
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