Quote:
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Originally Posted by directfiesta
A low currency is good for an exporting country.  |
precisely. In order for the United States to reduce their current account deficit they need to close the gap between their imports and exports. A weaker dollar means
- more expensive imports ---> LESS $$ imports
- more competitive US products on the international market ---> more $$ exports
----> shrinking trade gap -----> reducing current account balance.