Was a weak dollar the cause of the recession?

In providing analysis of the roots of the recession, there are as many fingers pointing as causes to which those fingers are aimed. The bottom falling out of the housing market. Deruglation of the financial services industry. The Bush tax cuts. And so on. But Forbes magazine contributor Brian Domitrovic sees another cause – a weak dollar.

“The most obvious problem with the economy during its mild boom from 2003 to 2007 was sectoral. There was way too much investment in things like housing, energy, and commodities. . . . A relationship becomes clear. Cause: comprehensive devaluing of the dollar on the part of its masters in the government. Effect: major investment shifting into hard assets corresponding to fear for the dollar’s soundness.

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