Why is the dollar so much weaker than it used to be?

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    The U.S. dollar has been getting weaker and weaker in the last several decades. This can be measured in two different ways: domestically and internationally. Internationally, this is determined by comparisons to other currencies worldwide such as the euro or yen. To measure the power of the dollar domestically it depends on the Consumer Price Index (CPI). When this in increasing due to supply and demand then the value of the dollar is less. This has been the trend for many years as CPI is rising and the dollar is getting weaker and weaker.

    The U.S. dollar has been getting weaker and weaker in the last several decades. This can be measured in two different ways: domestically and internationally. Internationally, this is determined by comparisons to other currencies worldwide such as the euro or yen. To measure the power of the dollar domestically it depends on the Consumer Price Index (CPI). When this in increasing due to supply and demand then the value of the dollar is less. This has been the trend for many years as CPI is rising and the dollar is getting weaker and weaker.

     

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