“When the Federal Reserve began telegraphing late last summer that it would launch a new round of monetary stimulus to help the U.S. economy, Wall Street assumed that the dollar would be the sacrificial lamb. More money in the financial system, after all, would be expected to depress the greenback’s value against other currencies. But that could work to the economy’s advantage by making American exports cheaper for foreign buyers. The downside is that a weaker dollar means a loss of purchasing power for Americans traveling abroad or buying foreign goods. How much of a loss? Measured since Aug. 31, the latest downtrend in the dollar has lopped off more than 10% of the buck’s purchasing power against a number of currencies.” Read more.
“How Much Purchasing Power Has the Dollar Lost? Take a Look”
Los Angeles Times, March 23, 2011.
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