The Dollar Surges

Published August 15, 2008 3:00am ET



THE MOST IMPORTANT economic news of recent weeks is the recovery of the long-comatose dollar. On a single day earlier this month it recorded its biggest jump against the euro in eight years, before retreating a bit. Sounds like unambiguous good news, since a stronger dollar might lower import prices, which have risen 21.6 percent in the past year. But economics is never that simple. Here’s why.

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