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122733 1 (1983-11-01)

handle is hein.gao/gaobacteq0001 and id is 1 raw text is: 







United States General Accounting Office
        Washington, D.C.  20548

                           FOR RELEASE ON DELIVERY
                           EXPECTED AT 10:00 a.m.
                           NOVEMBER 1, 1983


                    STATEMENT OF

                ALLAN I. MENDELOWITZ
                ASSOCIATE  DIRECTOR
NATIONAL SECURITY AND INTERNATIONAL AFFAIRS DIVISION

                     BEFORE THE

   SUBCOMMITTEE ON INTERNATIONAL TRADE, INVESTMENT
                 AND MONETARY POLICY
                       AND THE
      SUBCOMMITTEE ON DOMESTIC MONETARY POLICY

                       OF THE

    HOUSE COMMITTEE ON BANKING AND URBAN AFFAIRS


122733


ON


             FLOATING EXCHANGE RATES AFTER TEN YEARS

Mr. Chairmen and Members of the Subcommittees:

     We are happy to be here today at your request  to testify on

the importance of exchange rates to the American  economy and the

lessons of our 10 years' experience with  floating exchange

rates.  Our testimony is an interim report on our on-going  work

on exchange rates.

     The consequences of the high value of  the American dollar

on foreign exchange markets over the past several years  demon-

strate how important exchange rates have become  for the United

States.  Although the strong dollar has helped  to reduce infla-

tion by lowering the prices of imported goods,  it has made

American products more expensive than competing  foreign goods--


0,D T,0

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