From Reuters:
In the latest example that the U.S. dollar just ain't what it used to be, some shops in New York City have begun accepting euros and other foreign currency as payment for merchandise.
"We had decided that money is money and we'll take it and just do the exchange whenever we can with our bank," Robert Chu, owner of East Village Wines, told Reuters television.The increasingly weak U.S. dollar, once considered the king among currencies, has brought waves of European tourists to New York with money to burn and looking to take advantage of hugely favorable exchange rates.'
For some reason, the fall in the U.S. dollar doesn't concern me that much. In part, that's because our subscription service has a lot of export sales, so it helps our competitve position. But even thinking about the issue more generally, isn't the problem essentially self-correcting? As noted in the article, the weak dollar will stimulate U.S. sales to foreigners, boosting the U.S. economy and, probably, the dollar as well. It's true that if the U.S. economy were collapsing, or inflation were out of control, the problems might not correct themselves so easily. But that doesn't seem to be the case.
