It is a mistake to think that the dollar will bring down inflation.
It is the other way around. The expectations of lower inflation in the US, driven by lower commodities (caused by a weaker economy), are the main forces driving the dollar up.
Lower inflation makes our economy more predictable and more profitable. This is what makes our country attractive to foreign investors. For this reason they are buying dollars to invest in the USA.
More, much more when you subscribe to The Peter Dag Portfolio on https://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
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