23 September 2008

Could The Financial Crisis Help The Real Economy?

The Wall Street Journal notes that the financial crisis had weakened the U.S. dollar. Meanwhile, a brief $25 dollar spike in oil prices quickly retreated.

A weak dollar is good for U.S. exports, and hence jobs, while discouraging U.S. imports that contribute to the trade deficit. So, while Wall Street may suffer, the manufacturing sector may actual get a boost.

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