The dollar has been trading at, or close to, its all-time low in European currency markets, prompting calls for the European Central Bank to intervene to stop the dollar's slide against the euro. Is intervention a good idea?

There is no doubt that there is a problem with the dollar. The large US current account deficit is unsustainable and will have to be corrected. But will this correction be helped by a further depreciation of the dollar against the euro? Hardly, for at least two reasons.