Post
Topic
Board Economics
Re: The world would be better, if the US dollar...
by
fersa
on 23/10/2016, 13:25:10 UTC
Not always. It depends on the commercial balance and other economic categories: foreign investments, government assets abroad...

The exchange rate affects heavily the net exports. If USD is weak, US exports will be more attractive for the rest (Europe will buy more goods). With a strong USD, US purchases will be cheaper for them (they could buy asian and african commodities at better price)

The net effect depends on the aggregated elasticity