Economics, Econometrics and Finance
4 years ago

Declining dollar spells trouble for US and global economies, new study finds.

International Trade
Is a Declining Dollar Good for Either the U.S. Economy or The Global Ecnomy
Paul Davidson

Paper Summary

A declining dollar is bad for both the US and global economies. Despite the dollar dropping by 25% in 3 years, the US trade deficit has doubled. This happened because of the absence of the Marshall-Lerner condition. A new policy is suggested to reduce the US trade deficit and boost global economic growth.

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