The Dollar, the Deficit

Summary


DESPITE paying lip-service to the concept of a "strong dollar", the administration of President George Bush in fact does not seem care too much whether the once-mighty greenback continues its slide.

After all, allowing the dollar to lose ground against other global currencies is a surefire way for Bush to address the problem of the US current account deficit, partly because it makes American exports more competitive on the world stage.

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The Dollar, the Deficit

Sometimes known as the trade deficit, the current account deficit stands at 6per cent of GDP - a record level which is twice that considered to be sustainable.

The deficit...

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