Journal Article

Foreign economic growth and the dollar

Abstract: 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 if a desire to diversify out of dollars lies dormant among investors, faster growth abroad may stir it.

Keywords: Economic development; Dollar, American;

Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Economic Commentary

Publication Date: 2000

Issue: Sep

Order Number: 1