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Notices
AR
Alan Reynolds (not verified)
20th March 2016 | 6:47pm

When commodity prices fell during the 1997-98 Asian/Russian financial crisis, many (including the Fed) worried that would bring U.S. recession. But the U.S. was and still is a net importer of oil, copper and other key commodities priced in dollars. So, falling commodity prices in dollars (but not in weak currencies) reduced the cost of living for U.S. manufacturing and the cost of living for U.S. consumers. Aside from regional pains, mainly associated with oil and competing sources of energy (coal and gas), the U.S. economy in 2016 should be a net gainer from cheaper energy, petrochemicals, metals, etc.