Article: With a Changing Economic Perception, the Dollar Bucks Up

At this time a year ago, the U.S. dollar was falling out of bed. Day after day the currency hit new lows against the Japanese yen and German mark, with the Clinton administration being hammered by critics for not doing more to stem the slide.

To many commentators, the fall of the currency was taken as evidence of some deep flaw in the United States, its economy and its government's policies, particularly its large continuing budget deficits.

Federal Reserve Chairman Alan Greenspan called the dollar's decline "overdone . . . unwelcome and troublesome," and said defeat of a constitutional amendment to require a balanced federal budget helped to undermine the currency. Some Republican ...

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