A recent Business Week article discusses the possibility of a crash in the U.S. dollar and what the fallout of a dollar crisis might entail.
The author, Peter Coy, asserts that most economists and investors are discounting the possibility o f a crash in the U.S. dollar.
While a significant decrease in dollar value would benefit U.S. manufacturers, the event would likely trigger much higher rates of inflation and possibly hyperinflation.
Coy also suggests that a dollar crash would result in more restrictive credit, global trade wars and social unrest in China.
The author attributes current dollar weakness to the excessively accommodative Fed policies, and he suggests that financial speculation surrounding the dollar could prove to be a self-fulfilling prophesy.
Source: Business Week
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