Meaning: The quote by Martin Feldstein, an American economist, addresses the concept of currency competitiveness and its potential impact on a country's economy. In this statement, Feldstein suggests that there is a need for the US dollar to become more competitive in the near future in order to support an increase in exports and sustain the current pace of economic expansion. This quote encapsulates the complex interplay between currency valuation, international trade, and economic growth.

Feldstein's assertion about the need for the US dollar to become more competitive reflects the widely recognized phenomenon of currency valuation and its impact on a country's trade balance. When a country's currency is deemed to be "competitive," it means that its value in the foreign exchange market is perceived as favorable in relation to other currencies. A more competitive currency can make a country's exports more attractive to foreign buyers while potentially making imports relatively more expensive for domestic consumers and businesses.

The call for the dollar to become more competitive is rooted in the understanding that an increase in exports is essential for sustaining the pace of economic expansion. Exports play a crucial role in a country's economic performance, as they contribute to economic growth, job creation, and a favorable balance of trade. A more competitive dollar can make US goods and services more affordable and appealing to international buyers, potentially leading to an expansion of export activities.

Feldstein's emphasis on the need for increased exports as a means of sustaining economic expansion reflects the interconnected nature of international trade and domestic economic activity. In the context of the US economy, a reliance on domestic consumption and investment alone may not be sufficient to maintain robust economic growth. Therefore, an expansion of exports can act as a catalyst for sustaining and enhancing overall economic performance.

The timeframe mentioned in the quote, specifically referencing the need for increased exports "this year and in 2007," underscores the urgency of the situation. Feldstein's statement implies that the need for a more competitive dollar is not a distant or theoretical concern but rather a pressing issue that requires attention and potential policy intervention in the near term.

In the broader context of economic policy and international trade dynamics, the competitiveness of a country's currency is often subject to various internal and external factors. Monetary policy, interest rates, inflation, and global economic conditions can all influence the valuation of a currency. Additionally, geopolitical developments and trade agreements can have significant implications for a currency's competitiveness and its impact on trade flows.

In conclusion, Martin Feldstein's quote encapsulates the nuanced relationship between currency competitiveness, export expansion, and economic sustainability. The call for the US dollar to become more competitive reflects the recognition of the pivotal role that exports play in sustaining economic expansion. By highlighting the urgency of the need for increased exports and the potential impact of currency valuation, the quote underscores the intricate interplay between currency dynamics and economic growth.