{
  "id": "RL34582",
  "type": "CRS Report",
  "typeId": "REPORTS",
  "number": "RL34582",
  "active": false,
  "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department",
  "versions": [
    {
      "source": "EveryCRSReport.com",
      "id": 413157,
      "date": "2012-02-23",
      "retrieved": "2016-04-07T00:14:49.532553",
      "title": "The Depreciating Dollar: Economic Effects and Policy Response",
      "summary": "Depreciation of the dollar since 2002 raises concern among some in Congress and the public that the dollar\u2019s decline is a symptom of broader economic problems, such as a weak economic recovery, rising public debt, and a diminished standing in the global economy. However, a falling currency is not always a problem, but possibly an element of economic adjustments that are, on balance, beneficial to the economy.\nA depreciating currency could affect several aspects of U.S. economic performance. Possible effects include increased net exports, decreased international purchasing power, rising commodity prices, and upward pressure on interest rates; if the trend is sustained, the United states may also experience a reduction of external debt, possible undermining of the dollar\u2019s reserve currency status, and an elevated risk of a dollar crisis.\nThe exchange rate is not a variable that is easily addressed by changes in legislative policy. Nevertheless, although usually not the primary target, the dollar\u2019s international value can be affected by decisions made on policy issues facing the 112th Congress, including decisions related to generating jobs, raising the debt limit, reducing the budget deficit, and stabilizing the growth of the federal government\u2019s long-term debt. Also, monetary policy actions by the Federal Reserve, over which Congress has oversight responsibilities, can affect the dollar.\nThe exchange rate of the dollar is largely determined by the market\u2014the supply and demand for dollars in global foreign exchange markets associated with the buying and selling of dollar denominated goods, services, and assets (e.g., stocks, bonds, real property) on global markets. In most circumstances international asset-market transactions will tend to be dominant, with the size and strength of inflows and outflows of capital ultimately determining whether the exchange rate appreciates or depreciates.\nA variety of factors can influence the size and direction of cross-border asset flows. Of principal importance are the likely rate of return on the asset, investor expectations about a currency\u2019s future path, the size and liquidity of the country\u2019s asset markets, the need for currency diversification in international investors\u2019 portfolios, changes in the official holdings of foreign exchange reserves by central banks, and the need for and location of investment safe havens. All of these factors could themselves be influenced by economic policy choices.\nTo give Congress the economic context in which to view the dollar\u2019s recent and prospective movement, this report analyzes the evolution of the exchange rate since its peak in 2002. It examines several factors that are likely to influence the dollar\u2019s medium-term path; what effects a depreciating dollar could have on the economy; and how alternative policy measures that could be taken by the Federal Reserve, the Treasury, and the 112th Congress might influence the dollar\u2019s path.",
      "type": "CRS Report",
      "typeId": "REPORTS",
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      ],
      "topics": []
    },
    {
      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc40236/",
      "id": "RL34582_2011April15",
      "date": "2011-04-15",
      "retrieved": "2011-08-27T10:13:38",
      "title": "The Depreciating Dollar: Economic Effects and Policy Response",
      "summary": "This report discusses the trend of depreciation of the dollar since 2002. This  raises concern among some in Congress and the public that the dollar's decline is a symptom of broader economic problems, such as a weak economic recovery, rising public debt, and a diminished standing in the global economy. However, a falling currency is not always a problem, but possibly an element of economic adjustments that are, on balance, beneficial to the economy.",
      "type": "CRS Report",
      "typeId": "REPORT",
      "active": false,
      "formats": [
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          "format": "PDF",
          "filename": "files/20110415_RL34582_bdf52352969d87f944d4996278ff281c78ebdfd3.pdf"
        },
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          "format": "HTML",
          "filename": "files/20110415_RL34582_bdf52352969d87f944d4996278ff281c78ebdfd3.html"
        }
      ],
      "topics": [
        {
          "source": "LIV",
          "id": "Finance",
          "name": "Finance"
        },
        {
          "source": "LIV",
          "id": "Money",
          "name": "Money"
        },
        {
          "source": "LIV",
          "id": "Inflation",
          "name": "Inflation"
        }
      ]
    },
    {
      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc462316/",
      "id": "RL34582_2008Jul17",
      "date": "2008-07-17",
      "retrieved": "2014-12-05T09:57:41",
      "title": "The Depreciating Dollar: Economic Effects and Policy Response",
      "summary": "This report addresses the concern about the health of the U.S. economy regarding the depreciation of the dollar and examines the likely reasons for the dollar's fall, the effects the depreciating currency could have on the economy, and possible policy responses that could be considered to attempt to alter the dollar's path if needed.",
      "type": "CRS Report",
      "typeId": "REPORT",
      "active": false,
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        {
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          "filename": "files/20080717_RL34582_1d430a8e5eb0cef1c1036274fe95051ed43f62c4.html"
        }
      ],
      "topics": [
        {
          "source": "LIV",
          "id": "Finance",
          "name": "Finance"
        },
        {
          "source": "LIV",
          "id": "Money",
          "name": "Money"
        },
        {
          "source": "LIV",
          "id": "Inflation",
          "name": "Inflation"
        },
        {
          "source": "LIV",
          "id": "Economic policy",
          "name": "Economic policy"
        }
      ]
    }
  ],
  "topics": [
    "Economic Policy",
    "Foreign Affairs"
  ]
}