Foreign Exchange effects on Economy

Discussion in 'Economics' started by keithcali, Aug 30, 2010.

  1. US has net trade deficit I do not see how US will improve its deficit in short to medium term. If this continues for the next 5-10 years USD will be accumulated by countries trading with US. So does it mean that USD will depreciate significantly to curb imports while boost its exports? And what if USD does not depreciates, what will be the impact of this on the global economy?