The only way that we can reduce our financial dependence on the inflow of funds from the rest of the world is to reduce our trade deficit.

Even if the dollar does decline during the coming months, the delays in the response of exports and imports to the more competitive dollar will mean that the increase in aggregate demand from this source may not happen for a year or more.

First, I think the science of monetary economics has clearly gotten better.

Inflation is lower and more stable and the real business cycle fluctuations are more modest.

The good news is that a competitive dollar in the global market and a strong dollar at home are compatible in both the long run and during the transition to a more competitive dollar.

We pay some price when necessary to bring down inflation but that price is temporary and is not large relative to the permanent gain from reduced inflation.

And finally, no matter how good the science gets, there are problems that inevitably depend on judgment, on art, on a feel for financial markets.