It seems like only 10 years ago that a dollar was worth…”something”. The value of the dollar has been a constant discussion in the field of economics. There are many economists that believe that we should have a “strong dollar”. In fact, in 1985 America’s dollar was at one of its highest value. Then, a bill passed by the government to lower the value of the dollar. Yes, the government. The reason this happens is that America, just like most countries, has an “open” economy in the sense that we trade with other countries.

If the value of the dollar goes up too high, other countries will back off of buying America’s exports, and it will cause the dollar to drop below the average. On the other hand, when Americas dollar is cheap, it encourages other countries to buy our exports and therefore increasing our GDP. It’s a very iffy subject of which option is better, and perhaps there is no solution. Be entitled to you opinion.