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I think the main problem now is the trade deficit. Many countries invest the FX reserves in things like bonds, driving the yields down and encouraging investmen
by yuhong 9y ago
I think the main problem now is the trade deficit. Many countries invest the FX reserves in things like bonds, driving the yields down and encouraging investment in things like stocks. This is part of why higher profit margins are good for the US economy.
- mattmcknight 9y agoMore directly, methods of GDP calculation add exports and subtract imports, so the trade deficit is part of the GDP value presented. It's really not an effective measure.