...the "strong dollar" policy that has always been bandied about by the Fed and Treasury execs is being conspicuously undercut. These types of remarks cannot be said without some sort of tacit or explicit approval. Its also somewhat notable that they were said in that Bulwark of monetarism, my alma mater.
This leaves us with nominal exchange rates and structural adjustments. From this perspective, the weakness in the US dollar contributes to the adjustment. And structural policies, as necessary as they are, will not work quickly enough. If we are going to continue to reap the benefits of substantial global trade and global finance, the world needs to move to reduce the large and persistent current account imbalances that have now been with us for too long.
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