The Dollar and U.S. Manufacturing
6 Pages Posted: 28 Jun 2007
Date Written: December 1998
U.S. manufacturing industries are becoming increasingly sensitive to changes in the international value of the dollar. A look at recent studies of exchange rate effects on industry performance suggests that the 1997-98 rise in the dollar may significantly reduce U.S. producers' profits and compel firms to scale back their investment in new plants and equipment.
Keywords: exchange rates, manufacturing, investment, exposure
JEL Classification: F4, E3, N6
Suggested Citation: Suggested Citation