NEW YORK, DEC. 13 -- The dollar has fallen too far, raising the risk of higher inflation in the United States and depressed economies abroad, former Federal Reserve chairman Paul Volcker said today.

''I think there's too much emphasis on trying to correct the trade situation {with} changes in the dollar and too little on what I see as more fundamental adjustment measures, both in the U.S. and in Europe and Japan,'' Volcker said in an interview in Tokyo on an ABC News program, ''The Tokyo Forum.''

Volcker said Japan has taken some ''very promising steps'' toward redirecting its economy to rely on internal growth instead of exports, but he said West Germany has not done enough because of a ''little excessive'' fear of inflation.

''They seem to be moving. Whether they're moving far enough, fast enough, forcefully enough, it's difficult to judge, but I think there is a change in atmosphere,'' said Volcker, who was succeeded in August at the Federal Reserve by Alan Greenspan.

Volcker also said the United States needs to reduce its consumption, partly by doing more to cut the federal budget deficit.

''I think we've got big problems,'' Volcker said. ''I would not be gloomy if I thought that we are taking, collectively, not just in the U.S. ... the right actions. I think that's possible. In that sense I'm not gloomy. If we don't take them, then I'm gloomy.''