But then in April of 1985 the dollar began a sharp decline. The dollar's trade weighted value fell 23 percent in just 12 months and by a total of 37 percent by the beginning of 1988.

We are particularly poor at the open economy issues.

Even if the dollar does decline during the coming months, the delays in the response of exports and imports to the more competitive dollar will mean that the increase in aggregate demand from this source may not happen for a year or more.

Domestic inflation reflects domestic monetary policy.

We pay some price when necessary to bring down inflation but that price is temporary and is not large relative to the permanent gain from reduced inflation.

After all, an overvalued dollar gives us the ability to buy foreign goods at lower prices. And the existing volume of exports brings more yen and euros than they would if the dollar were more competitive.

But then in April of 1985 the dollar began a sharp decline. The dollar's trade weighted value fell 23 percent in just 12 months and by a total of 37 percent by the beginning of 1988.

I think that over the last few decades, we have seen better economic outcomes than in the past.

Although economists have studied the sensitivity of import and export volumes to changes in the exchange rate, there is still much uncertainty about just how much the dollar must change to bring about any given reduction in our trade deficit.

First, I think the science of monetary economics has clearly gotten better.

But the primary reason for wanting the dollar to become more competitive in the near future is that we may need an increase in exports this year and in 2007 to sustain the economy's current pace of expansion.

The more competitive value of the dollar turned around the trade deficit.

Increased government spending can provide a temporary stimulus to demand and output but in the longer run higher levels of government spending crowd out private investment or require higher taxes that weaken growth by reducing incentives to save, invest, innovate, and work.

A second reason why science cannot replace judgement is the behavior of financial markets.

But because we in the United States finance our current account deficit by borrowing in our own currency, we can move to a more competitive dollar without the adverse effects that followed currency declines in other countries.

The price of imported oil in the US doubled between summer 2003 and summer 2005, reducing consumers' purchasing power by more than 1 per cent of gross domestic product.

The good news is that a competitive dollar in the global market and a strong dollar at home are compatible in both the long run and during the transition to a more competitive dollar.

A rise in the level of saving can reduce aggregate activity temporarily but only a sustained high level of saving makes it possible to have the sustained high level of business investment that contributes to the long-run growth of output.

Homeowners who refinanced their mortgages took out cash and reduced their monthly payments at the same time. Much of the cash obtained by refinancing was spent on consumer durables, home improvements and the like.

And finally, no matter how good the science gets, there are problems that inevitably depend on judgement, on art, on a feel for financial markets.

An increase in the relative price of products from the low wage manufacturers in Asia and Latin America will also make those products less attractive to American consumers.

Thirty years ago, many economists argued that inflation was a kind of minor inconvenience and that the cost of reducing inflation was too high a price to pay. No one would make those arguments today.

To finance this trade deficit, the U.S. has to borrow from the rest of the world or sell American assets like stocks, businesses, and real estate to the rest of the world.

The only way that we can reduce our financial dependence on the inflow of funds from the rest of the world is to reduce our trade deficit.

Unless the trade deficit shrinks, the combination of the trade deficit and the interest and dividend payments to foreigners will grow ever more rapidly.

My theme this evening is that America needs a competitive dollar.

In short, both experience and economic theory imply that the US could now t to a more competitive dollar without experiencing either increased inflation or decreased economic growth.

So just as I want pilots on the planes that I fly, when it comes to monetary policy, I want to think that there is someone with sound judgement at the controls.

Inflation is lower and more stable and the real business cycle fluctuations are more modest.

If the Federal Reserve pursues a strong dollar at home while the dollar becomes more competitive in global markets, we can achieve both price stability and a more balanced path of economic growth.

Contrast that with the call of the Liberal Democrats in April, when they were prepared to call upon the British people to participate in a 24-hour strike. It shows how far to the right the Labour Party's gone.

I would also point out that many governments that chose not to support this war - certainly, the French president, Jacques Chirac, as I recall in April of last year, referred to Iraq's possession of WMD.

Oh, to be in England now that April's there.

He told me that Francis Crick and Jim Watson had solved the structure of DNA, so we decided to go across to Cambridge to see it. This was in April of 1953.

There is no glory in star or blossom till looked upon by a loving eye; There is no fragrance in April breezes till breathed with joy as they wander by.

Long stormy spring-time, wet contentious April, winter chilling the lap of very May; but at length the season of summer does come.

I've also committed my time and resources to many local organizations like Christmas in April, Catholic Community Services, and Hudson County Meals on Wheels.

The first of April is the day we remember what we are the other 364 days of the year.

The journey and excursions in Mexico which have originated the narrative and remarks contained in this volume were made in the months of March, April, May, and June of 1856, for the most part on horseback.

Arizona's forest fires are not waiting for April, and neither will we. That is why I am pushing for stepped up deployment for Hot Shot wildfire crews in March rather than April, in order to better prepare for the expected fires in northern Arizona.

Sweet April showers do spring May flowers.

But then in April of 1985 the dollar began a sharp decline. The dollar's trade weighted value fell 23 percent in just 12 months and by a total of 37 percent by the beginning of 1988.

Income tax filing and payment day should be moved from April 15th to November 1st so it can be close to election day. People ought to have their tax bills fresh in mind as they go to vote.

Well the war lasted for three months, from April of 1994 until the Tutsi army, the exiles as it were, gained control of the country and then it stopped.

When Andrew went with the girls, we were talking all morning and he was saying, 'It's okay. Just remember we had such a good day. Our wedding was so perfect.' Because we're such a unit together. He made me feel very part of the day on April the 29th.

So sweet love seemed that April morn. When first we kissed beside the thorn, So strangely sweet, it was not strange We thought that love could never change.

We were led to a pediatric ophthalmologist. It's a hard date for me, April 14, 1998. The doctor came back from the examining room and told us she had tumors in both eyes.

Elections should be held on April 16th- the day after we pay our income taxes. That is one of the few things that might discourage politicians from being big spenders.

April is a promise that May is bound to keep.