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.

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.

The individual organs follow the same pattern as the whole organism, i.e. they have their period of growth, of stationary, maximum activity and then of aging decline.

I take great pride in having been able to overcome the Asian financial crisis and seeking the opportunities available to bring about an unprecedented growth in the economy.

Conformity is the jailer of freedom and the enemy of growth.

Genius is not a possession of the limited few, but exists in some degree in everyone. Where there is natural growth, a full and free play of faculties, genius will manifest itself.

The investor of today does not profit from yesterday's growth.

Promoting job creation and economic growth in the Hudson Valley is one of my top priorities in Congress.

We will see the increasingly rapid rate of growth we've already been seeing in Colorado continue.

The growth of technology is such that it is not possible today for a nuclear physicist to switch into medical physics without training. The field is now much more technical. More training is needed to do the job.

We have stabilized our economy. We took over a very sick economy, and we were hemorrhaging 750,000 jobs a month. We have stopped the hemorrhaging. In fact, we had 140,000 job growth last month. And that's what I call progress.

We got to know the competition very well. In the '50s popcorn made a big growth in sales. Our main push was to produce the best quality and sell in quality retail outlets.

Happiness, contentment, the health and growth of the soul, depend, as men have proved over and over again, upon some simple issue, some single turning of the soul.

It's hard to find a way forward. When you're 18 it happens in huge chunks every day, but after 20 years, growth is much more costly.

I think that obstacles lead to growth and ultimately, the most learning I've done in my life is between jobs.

Well, WorldCom's growth exploded in the Clinton years, there's no question, there's no disputing that.

Growth is a painful process.

The organizational architecture is really that a centipede walks on hundred legs and one or two don't count. So if I lose one or two legs, the process will go on, the organization will go on, the growth will go on.

Modern techniques have torn down state frontiers, both economical and intellectual. The growth of means of transport has created a world market and an opportunity for division of labor embracing all the developed and most of the undeveloped states.

Technological innovation is indeed important to economic growth and the enhancement of human possibilities.

Research and development needs permanent tax credits to build the technology that spurs our growth. But no government programs alone can get America's students to study more science and math; parents must push and help their children to meet this goal.