Feldstein: Panic Should Be Over Dollar, Not Euro

Friday, 12 Mar 2010 11:47 AM
By: Dan Weil

The euro’s recent drop to a 10-month low against the dollar won’t last, says Harvard economist Martin Feldstein.

The former chairman of President Reagan’s Council of Economic Advisers says that the euro’s decline is an overreaction to Greece’s debt crisis.

And the dollar will ultimately suffer from the exploding U.S. budget and current account deficit, he says.

“The euro is weakening despite their better trade balance,â€