The Swinging Dollar

Swings in the dollar enable the U.S. to mitigate the business cycle, often at the expense of Europe and other countries.
The low dollar in a recession cushions the contraction, while the high dollar during the boom mitigates inflation.
This is the major consequence of the shift to floating in the early 1970s.
Look at it in the context of the international monetary system.

Swings in the dollar enable the U.S. to mitigate the business cycle, often at the expense of Europe and other countries.