US dollar appreciated by 12 per cent Does it matter? What can be done about it?

Does the dollar’s strength matter?

Yes, it does, because, as a recent paper co-authored by Maurice Obstfeld, former chief economist of the IMF, notes, it tends to impose contractionary pressure on the world economy. 


What can be done? Not that much.

Martin Wolf FT 27 September 2022

https://www.ft.com/content/daf5c774-fb7f-4ef3-a4ba-c92e3b373066

 

Maurice Obstfeld Central banks are raising rates nearly everywhere, risking a global recession

https://www.piie.com/research/piie-charts/central-banks-are-raising-rates-nearly-everywhere-risking-global-recession


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