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

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 most superficial student of Roman history must be struck by the extraordinary degree in which the fortunes of the republic were affected by the presence of foreigners, under different names, on her soil.

I was afterwards sorry for this, though, if I ever travel again, I shall trust to none but natives, as the climate of Africa is too trying to foreigners.

Children are all foreigners.

Only very rarely are foreigners or first-generation immigrants allowed to be nice people in American films. Those with an accent are bad guys.

I wouldn't make an anti-American film. I'm one of the most pro-American foreigners I know. I love America and Americans.

Americans need to understand the significance of having their civil liberties dismantled. It doesn't just affect terrorists and foreigners, it affects us all.

We are the only ones who really can care about the preservation Foreigners who come to excavate, maybe some of them care about preservation, but the majority care about discoveries.

The world still consists of two clearly divided groups: the English and the foreigners. One group consists of less than 50 million people; the other of 3,950 million. The latter group does not really count.

Travelers never think that they are the foreigners.

Our people are unemployed and anxious to work for the food which foreigners can give us.

To the people here, we are outsiders. Foreigners.

The simple fact is this: they are foreigners inside a country which has rejected them. Therefore, these foreigners wherever they go or travel they will be rained down with bullets from everyone. Attacks by members of the resistance will only go up.

But I am not allowed to speak to foreigners and I am not allowed to leave the country. So I'm not so happy.

To cement a new friendship, especially between foreigners or persons of a different social world, a spark with which both were secretly charged must fly from person to person, and cut across the accidents of place and time.

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

I worked three and then six hours a day in my studio with strict discipline and emotion. I obtained awards usually granted to other foreigners during the end-of-year admission tests.

I noticed that there are no B batteries. I think that's to avoid confusion, cause if there were you wouldn't know if someone was stuttering. 'Yes, hello I'd like some b-batteries.' 'What kind?' 'B-batteries.' 'What kind?' 'B-batteries!' and D-batteries that's hard for foreigners. 'Yes, I would like de batteries.'

I think all foreigners should stop interfering in the internal affairs of Iraq. Those who want to come and help are welcome. Those who come to interfere and destroy are not.

It could be argued that, in Thailand, many foreigners have come and gone, and the number of people who are considered to be Thai have traveled abroad in a great number.