Economy, Value Of The Dollar | featured news

...it’s worth emphasizing that one of Romney’s top advisers is promoting economic stimulus through a lower dollar. That could be good idea, as cheap dollars are generally helpful in economic slumps, but it’s an interesting position for a Republican candidate to embrace. Paul Ryan has declared, “There is nothing more insidious that a country can do to its citizens than debase its currency,” while Tim Pawlenty has said “When you devalue the dollar, you are devaluing the net value of this country.” This sort of rhetoric could make it difficult for Romney to follow this path if elected.

China should guard against risks from "excessive" holdings of U.S. assets as Washington could pursue a policy to weaken the dollar, a senior official at the State Administration of Foreign Exchange said in comments published on Tuesday.

It's making imports and trips to Europe more expensive, but it's also making American products and visits to the U.S. cheaper for foreigners. It might just be the tonic the economy needs.

The falling dollar is stoking fears of inflation and worries about the country's eroding power in the world. But for now it may be just the tonic that's needed to help the U.S.