Does The Value Of The Dollar Really Impact Grain Exports?
Let’s imagine that you have awakened today to discover that the economic law of supply and demand was no longer valid as of midnight. Or maybe the newspaper is carrying a headline that Newton’s Law of Physics expired yesterday and your state government could not afford to renew it. Or maybe high noon signals a change that all teenagers are now in charge of family budgets and assigning chores. While those may be a bit outlandish, a seemingly reasonable economic theory that has worked in the past seems to have been failing regularly, without a rational cause. Your coffee shop talk of the past may have touched upon the strong exports being enjoyed by US agriculture, helped by the weakening US dollar. After all, foreign currencies can go farther and buy more when they can acquire more dollars with less outlay. Grain importers tend to buy from the nation where they can get “two for the price of one” compared to past years. In recent months the US economy has seen a declining dollar attract
