exchange rates

Sinking Dollar: This Time on Purpose

The Fed wants to keep the inflation rate up around 2%, because their efforts to boost the economy only get traction when they can push interest rates well below the inflation rate.

The sinking dollar, as viewed from overseas

To someone in the US, the decline in the value of the dollar has mainly made itself felt up to now in the form of increases in the prices of globalized commodities--everything from

Nonfat dry milk--no longer a frugal alternative

For more than thirty years, nonfat dry milk was a frugal staple. For things like baking and making yogurt, it was as good as fresh milk. Not many people wanted to drink the stuff

The sinking dollar

It takes more than $1.40 to buy one euro today. It cost less than $1 as recently as late 2002. A Canadian dollar is worth just about exactly a US dollar--a parity not seen since