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If the Federal Reserve pursues a strong dollar at home while the dollar becomes more competitive in global markets, we can achieve both price stability and a more balanced path of economic growth.

A stronger dollar increases U.S. dollar purchasing power.

But the primary reason for wanting the dollar to become more competitive in the near future is that we may need an increase in exports this year and in 2007 to sustain the economy's current pace of expansion.

The dollar used to be a gold standard currency. And the dollar is really good in the last century, I mean in the 19th century.

The strength of the dollar has historically been tied to the strength of the U.S. economy and the faith that investors have in doing business in America.

The U.S. currency has been the most attractive currency to be in for very, very long periods of time.

The problem started before World War I. The gold standard was working fairly well. But it broke down because of the war and what happened in the 1920s. And then the U.S. started to become so dominant in the world, with the dollar becoming the central currency after the 1930s, the whole world economy shifted.

There are so many problems in the E.U. that several countries are warming up to the idea that after the single currency, a deeper integration could also be created.

Eventually the dollar won't always rule. Eventually there will be a challenge to the United States and it will have to be like other countries that are a bit concerned about their currency, and then have to ratchet back in order to - right, in order to sustain. We just haven't reached that point yet.

And I am convinced that a single focus on preserving the purchasing power of the dollar, in effect, guarding against inflation or deflation, actually creates a solid foundation for the greatest job growth and the strongest economy that America can have.