3 ms·
Nope, trade deficit is capital outflow. US spends dollars (or gold reserves) to buy goods that are mostly consumed.
by deepsun 7y ago
Nope, trade deficit is capital outflow. US spends dollars (or gold reserves) to buy goods that are mostly consumed.
- hylaride 7y agoBut those dollars need to be spent and the easiest place to either spend or stash them is back in the US. Also, the trade deficit doesn’t measure services, of which the US has a surplus last I checked.