Stronger Dollar Leads to Lower U.S. Prices, Boosts Export Competitiveness
The article explores how a stronger dollar affects prices in the U.S. The researchers found that a 15 percent increase in the dollar's value since June 2014 has only a small impact on consumer prices, reducing them by a small amount in the short term and slightly more after two years. However, the effect on export prices is much larger, meaning that changes in the dollar's value mainly impact the trade balance through exports.