As some finance journalists put it: “...the current account
deficit is the dominant factor (in explaining the depreciation of
the dollar) ... The US deficit is running at 3,1% of GDP. This
implies further dollar depreciation from here.” We know, however,
that the CA deficit is the difference between saving and
investment.
• Will we see a depreciation, or an appreciation of the dollar
given the current policy from the FED?
• Will that help in changing saving and investment and thus lead
to the closing of the current account deficit?
• Is a depreciation of the dollar vis-à-vis the euro the only
mechanism through which the current account deficit can be
reduced?
• Can the US economy continue enjoying a CA deficit of 3,1% or
worse without further depreciation of the dollar?
The United States recorded a Current Account deficit of 3.10 percent of the country's Gross Domestic Product in 2020. souncer: U.S. Bureau of Economic Analysis -1 -1.7 -2 -2.2 -2.2 -2.4 -2.3 -2.4 -2.6 -2.7 -3 -4 -5 -6 -7 2015 2020 TRADINGECONOMICS.COM | U.S. BUREAU OF ECONOMIC ANALYSIS Zoom: 1m 6m 1y 10y all 20:20 Select Period: 1.440 1.135 1.25 1.20 1.15 1.10 1.100 1 -2.4 2010 -3.2 -3.9 -4.2 2.000 EURvs. USD 29/04/2010 2011 -4.3 2012 -4.7- -5.3 -5.9 -6 2005 30/10/2020 2013 -5.1 -4.7 ☐ 2014 -3.2 -3.1 2010 2015 -2.7 2:016 -2.4 2017 2018 2019 -3.1
Select: Period: 1.11 1.10 1.09 1.08 1.07 1.06 1.05 1.04 EUR vs. USD 14/03/2022 Mar 16 Mar 20 Mar 24 30/04/2022 Mar 20 Apr Apr 05 Zoom: Apr 09 1m Apr 13 6m Apr 17 1y Apr 21 10y Apr 25 all Apr
The United States recorded a Current Account deficit of 3.10 percent of the country's Gross Domestic Product in 2020. so
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answerhappygod
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The United States recorded a Current Account deficit of 3.10 percent of the country's Gross Domestic Product in 2020. so
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