Most of people probably think that the falling dollar will negatively affect American economy. As a matter of fact, there are many good things that will come out of it.

If you are American working for a large company such as Boeing or Ford, this is actually good news for you, because falling dollar should result in higher demand for American products that are being exported all over the world.  In general, falling dollar will be somewhat bad news for the rest of the world since it will cut the competitiveness of exports of other nations, and great news for American exporters since they will be able to snap larger share in the competition in a weakening world marketplace.

The bad side is that if you enjoy driving European cars and eating European food, falling dollar might somewhat lower your living standards. The weaker dollar will definitely result in stronger euro.

Also, falling dollar can raise inflation rate since imports are now more expensive. However, so far this was not the case. Nor has it resulted in any declines in the stock market…yet.