The Strong Dollar Is a Vote of Confidence in America
The US economy, and US soft power, are far more robust than many critics would care to admit.
Strong bills.
Photographer: Paul Yeung/Bloomberg
US price inflation is at 9.1% and a there is a fiercely strong dollar, a pair of statistics that was certainly unexpected a year ago and even now seems odd. On closer inspection, however, these numbers reflect a world in which the US is still seen as a leader — in both economic growth and its ability to respond nimbly to crises.
Many countries are currently experiencing high inflation, but markets view the US as the one most interested in setting the problem straight, and relatively soon. American voters hate inflation, the Fed is taking palliative actions, and the American political system is willing to suffer a recession to bring down inflation, as it did during the late 1970s.