Discuss policies to stop the dollar falling Essay

Discuss policies to stop the dollar falling - Essay Example Bergstein (2013) notes that there has been a decline in the role of the dollar over the past three decades, and will largely continue falling. Hence, fast reforms need instigation in both the institutions and the enforcement of the rules. Achievement of these alterations can be through amendments to the charter via developed consensuses. All the institutions will then have determination toward the achievement of the goals set. In attempt to halve the slides of US dollar, the government needs to increase its interest rates. The greater the interest rates, the higher the attraction of investors and hence saving pumping in cash that will stabilize the falling of the dollar. Additionally, the high-interest rates will ensure increased savings and lead to declined spending. The situation will facilitate the reduction of imports made into the USA thus helping the dollar to appreciate in value. However, this situation might lead to lowered growth and a spare capacity in the economic state of the USA (Dubil,