"But because we in the United States finance our current account deficit by borrowing in our own currency, we can move to a more competitive dollar without the adverse effects that followed currency declines in other countries"

This quote by Martin Feldstein is describing the current account deficit of the United States. The current account deficit is when a nation imports more items and services than it exports. In order to finance this deficit, the US borrows cash in its own currency, the United States dollar. This indicates that the United States can adjust the worth of the dollar to make it more competitive in the global market without the exact same negative impacts that other nations have actually experienced when their currencies have actually declined. This is due to the fact that the US is not based on foreign currencies to fund its current account deficit. By adjusting the value of the United States dollar, the United States can remain competitive in the global market.