ABSTRACT
The increase in the exchange value of the dollar over the past several years has exerted a strong negative influence on the US economy, releasing a flood of imports into the United States, eroding the market share of many domestic industries, and placing US exports at a severe competitive disadvantage. This chapter evaluates the implications of a rapid decline in the dollar for the US economy, the energy producing industries and energy consumers. The economic impacts of a dollar decline were estimated using the Wharton Econometric Forecasting Associates Long-Term Model. The primary force behind this improved economic performance would be the increased output from US manufacturing industries, which have borne the brunt of the high dollar value for several years.
