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

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.

Slovakia's joining the OECD in 1999 is totally dependent on meeting economic reforms required such as transparency and legislation that permits fair and open conduct of trade and business.

Chicago kept industry, attracted new business, became the center for convention trade and transportation.

Let me say at the outset that I do not reflexively oppose international trade.

China's idea of fair trade is government subsidies of its textile and apparel exports to the United States, currency manipulation, and forgiveness of loans by its government banks.

So that is how I ended up with those two titles, I like Accidentally on Purpose better - it is how we work in our trade - is it really an accident, or is there a thread of destiny in there? That was the intention, I am not sure I found out.

There is not in the world so toilsome a trade as the pursuit of fame; life concludes before you have so much as sketched your work.

Nay, be a Columbus to whole new continents and worlds within you, opening new channels, not of trade, but of thought.

This constitution recognises the need for social dialogue involving labour and management; it involves trade unions in the decision-making process; it has a social vision founded on social dialogue.

Go miser go, for money sell your soul. Trade wares for wares and trudge from pole to pole, So others may say when you are dead and gone. See what a vast estate he left his son.

But I believe in fair trade, and I will tell you, I have many, many friends heading up corporations, and people that do just business in China, they say it's virtually impossible. It's very, very hard to come into China. And yet, we welcome them with open arms.

Normal military trade is undoubtedly part of the normal State-to-State relations.

Free Tibet before free trade.

Some go on to trade schools or get further training for jobs they are interested in. Some go into the arts, some are craftsmen, some take a little time out to travel, and some start their own businesses. But our graduates find and work at what they want to do.

Nonetheless, the developing countries must be able to reap the benefits of international trade.

A key U.S. initiative in this trade war must be to develop reliable trading partners in the world.

The Clinton administration brought 65 cases from 1995 to 2000 before the World Trade Organization. The Bush administration has brought twelve. Twelve cases. They haven't even been able to stand up for our jobs.

The offshore ocean area under U.S. jurisdiction is larger than our land mass, and teems with plant and animal life, mineral resources, commerce, trade, and energy sources.

By perfecting this legislative machinery and by participating in the various international agreements we intend to contribute to the wholesome development of world trade.

The methods by which a trade union can alone act, are necessarily destructive; its organization is necessarily tyrannical.