Bergsten and Williamson (Institute for International Economics, Washington, DC) introduce 11 conference papers they edited for a follow-up conference to the book Dollar Overvaluation and the World Economy (2003). Contributors concerned over adverse effects of the "strong dollar" on the world economy discuss models of equilibrium exchange rates, dollar adjustment, and new approaches to analyzing the impact of intervention on currency markets. They conclude that the dollar must decline by some 15 percent for the current deficit to be sustainable, and that Asian currencies must also be revalued. Annotation ©2004 Book News, Inc., Portland, OR (booknews.com)
Building on the scholarship of Dollar Overvaluation and the World Economy (2003), this book assesses the progress that has been made to date in correcting the sizable misalignments of key national currencies that developed in the late 1990s and early 2000s. The book examines whether a dollar decline is needed for the United States and the rest of the world to achieve sustainable current account positions and what the impact of a major dollar realignment would be on economies around the world. It also features new ideas on the effectiveness of intervention in moving exchange rates in a desired direction. The book brings together perspectives from government, industry, and academia.
