A rational bubble

Article Abstract:

The US dollar has increased in value in relation to the Japanese yen and is seen as overvalued by some observers. Overvalued exchange rates are likely to occur when economies have tight monetary policy and strong demand. Low Japanese interest rates could contribute to an increase in capital flowing out of Japan which in turn could depress the value of the yen. A rising US current account deficit is likely to mean that the dollar will eventually drop in price.

Yen (Japan)

The dangers of the dollar

Article Abstract:

There is a debate on whether the US dollar could fall as a result of the current account deficit of the US.

Balance of Payments, Economic aspects

Anticipated euro rise greeted with mixed blessings

Article Abstract:

The impact of a rise in the value of the euro currency in relation to the US dollar is examined in detail.

Foreign exchange, Western Europe