U.S. dollar
cross-posted to policyresearch
I thought this was an informative essay on the U.S. dollar and trade deficit:
http://www.businessweek.com/magazine/content/07_10/b4024037.htm
I am less alarmist on this issue (and the national debt) than I used to be because I understand it better. I think it is pretty fascinating that theoretically: If the ratio of debt to GDP falls over time, the government can roll over its debt by issuing new debt to pay the interest and maturing debt. And despite the theory, there is still much that concerns me because of the uncertainty of future GDP and debt trends.
I thought this was an informative essay on the U.S. dollar and trade deficit:
http://www.businessweek.com/magazine/content/07_10/b4024037.htm
I am less alarmist on this issue (and the national debt) than I used to be because I understand it better. I think it is pretty fascinating that theoretically: If the ratio of debt to GDP falls over time, the government can roll over its debt by issuing new debt to pay the interest and maturing debt. And despite the theory, there is still much that concerns me because of the uncertainty of future GDP and debt trends.