The strong dollar policy is the United States economic policy based on the assumption that a strong exchange rate of the United States dollar is in the interests of the United States and the whole world. It is said to be also driven by a desire to encourage foreign bondholders to buy more Treasury securities. The United States Secretary of the Treasury occasionally states that the US supports a strong dollar. Since the implementation of this policy, the dollar has declined substantially. Despite this, the policy keeps inflation low, encourages foreign investment, and maintains the currency's role in the global financial system.
Famous quotes containing the words strong, dollar and/or policy:
“It is a mighty error to suppose that none but violent and strong passions, such as love and ambition, are able to vanquish the rest. Even idleness, as feeble and languishing as it is, sometimes reigns over them; it usurps the throne and sits paramount over all the designs and actions of our lives, and imperceptibly wastes and destroys all our passions and all our virtues.”
—François, Duc De La Rochefoucauld (1613–1680)
“Give a beggar a dime and he’ll bless you. Give him a dollar and he’ll curse you for witholding the rest of your fortune. Poverty is a bag with a hole at the bottom.”
—Anzia Yezierska (c. 1881–1970)
“Our policy is directed not against any country or doctrine, but against hunger, poverty, desperation and chaos. Its purpose should be the revival of a working economy in the world so as to permit the emergence of political and social conditions in which free institutions can exist.”
—George Marshall (1880–1959)