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FT: Tax Rise

Say it softly: the solution is a tax rise

Published in the Financial Times
November 23, 2004

As the Bretton Woods system of fixed exchange rates was collapsing in 1971, John Connally, the US treasury secretary, famously said: "The dollar is our currency, but it's your problem." In the intervening three decades many things have changed, and that is one of them. Today, the dollar is an American problem as well. The question is what to do about it, and the answer is that there must be more than just words from John Snow, the current treasury secretary. Fiscal policy must change, the sooner the better.