P.M. BRIEFING : Effort to Hold Dollar Down Failing
The effort by the United States and other top industrial countries to stabilize the value of the dollar has broken down, running the risks of higher U.S. trade deficits in future years, economists at a Washington research institute said today.
“The coordination process is in shambles,” said C. Fred Bergsten, director of the Institute for International Economics.
He said the effort launched by the United States and the governments of Japan, West Germany, Britain, France, Canada and Italy had failed to keep the dollar from rising this year above the upper targets set by the world’s richest industrial countries.
That will spell trouble down the road as American exporters find that the higher value of the dollar makes it more difficult to sell their goods abroad, Bergsten said at a news conference.
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