This study reexamines the relationship between the foreign exchange value of the U.S. dollar and U.S. industrial production to see if the decline in value of the U.S. dollar since 1985 caused the U.S. industrial sector to grow as theory suggests. Results indicate that the U.S. dollar's decline had no impact on U.S. industrial production. This is most likely due to the fact that the portion of the U.S. industrial sector exposed to global competition has been small. The value of the U.S. dollar is demonstrated to be a very poor barometer of the performance of the U.S. industrial sector.
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