WASHINGTON — President Reagan's newly designated chief economic adviser said Tuesday that he opposes large-scale intervention by the United States to lower the high international value of the dollar.
Beryl Sprinkel, named to fill the long-vacant post as chairman of the President's Council of Economic Advisers, told his Senate confirmation hearing he believes that the value of the dollar will drop, but he refused to speculate when.
"We should not encourage frequent intervention," he said. "It won't work."
Governments enter international financial markets by selling or buying currencies to stabilize money. Sprinkel did not rule out all intervention but appeared to favor limiting it to disorderly market situations.
Sprinkel, deputy undersecretary at the Treasury for the past four years, was named to fill the spot left vacant by the resignation of Martin Feldstein nine months ago.