A study of U.S. intervention in the foreign exchange market between 1984 and 1987, concluding that exchange-rate stability among nations depends on fundamental macroeconomic policies, not intervention.

An examination of causality between dollar exchange-rate movements and U.S. price levels as described by the relative purchasing power parity theory, with a discussion of channels of price pressure and of the Hooper-Lowrey method of estimating future trends of the dollar.

An analysis of the U.S. trade deficit, featuring an evaluation of the effectiveness of America's effort to correct the deficit by promoting dollar depreciation and by encouraging the growth of foreign economies.

Analysts caution that rapid foreign economic growth could induce a depreciation of the dollar, as international investors diversify their portfolios in favor of higher returns abroad. Although we cannot establish a simple relationship between foreign growth and the dollar, we can conclude that...

A discussion of three channels through which U.S. intervention policy could theoretically influence the foreign-exchange market: the monetary channel, the portfolio-adjustment channel, and the expectations channel.

A discussion of the costs associated with trade restraint, focusing on devices currently used or recently proposed in the United States.

Although Americans spent $1.3 trillion on foreign goods and services last year, many regard imports with hostility, preferring to “buy American.” But do imports really hurt the U.S. economy, as many believe? This Economic Commentary argues the contrary position: Countries that are open to...