Papers on "Economic Effects of U.S. Dollar Depreciation" and similar term paper topicsThis paper examines the key sides of the argument regarding the effect of the depreciation of the US dollar. It also looks at the outlook for the future and the effects on the US and global economies. The paper investigates the hypothesis that the depreciating dollar will help to rebalance the trade deficit, resulting in a stronger overall global economy.
"From the standpoint of increased demand for goods, it can be argued that the depreciation of the dollar is actually good for the economy. However, when one considers the increase in commodity prices, it would appear to put a pinch on the wallets of the average American citizen. Rivens, (2004) indicated that the current trade deficit was nearly 5% of the economy, using this as a basis for a gloomy outlook. However, this is actually a decrease from the record 7% in 2005, which was not mentioned. Increases in demands for US products were a key factor in the ability to reduce the debt. Extra funds were used to offset the debt. Therefore, the 5% reported by Rivens was an improvement of the past several years."
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