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On the contrary, a weaker dollar would make exports more competitive and imports more expensive, thus realigning trade balance. https://www.lynalden.com/frayin
by maxwell 2y ago
On the contrary, a weaker dollar would make exports more competitive and imports more expensive, thus realigning trade balance.
https://www.lynalden.com/fraying-petrodollar-system https://www.lynalden.com/fraying-petrodollar-system
- rchaud 2y agoThis is a strategy for low income countries in a race to the bottom, not rich ones. So maybe circle back to this in 5 years.
- jaredklewis 2y agoIf you are manufacturing complex things with complex supply chains (like a Boeing 787 or a Caterpillar power shovel), the imports being expensive bit also drives up the price of exports. But regardless of what happens with trade balance, it will also make borrowing money much more expensive, which is not great for the US since our debt to GDP ratio is over 100%. It also removes another non-military weapon from our toolkit.