Show me the money

摘要

At the start of this year, when the American dollar stood at $1.36 to the euro, most economists expected it to stay weak or to become still more feeble. Instead it has since risen by 14% against Europe's single currency, hitting a 14-month high of $1.19 this week. Another puzzle: contrary to dire predictions that America's vast current-account deficit would plunge the country ever deeper into debt to foreigners, recent figures show that foreign debt has actually fallen, relative to GDP, in the past few years. Does this mean that the current-account deficit isn't a problem after all, and that the dollar will keep on climbing? No, it doesn't.