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December 19, 2006
The number you shouldn't care about
I don't generally care much about the trade deficit. However, it has a strong chance of eventually causing a sudden weakening of the dollar in FX markets, then I would start to concern myself with it. Over in the free section of the WSJ, in a piece called Dollars, Debt and the Trade Gap, Thoughts on the Dropping Dollar, you can see a discussion of the likelihood of that very calamity by international ecconomists Menzie Chinn and Kash Mansori.
Posted by OneEyedMan at December 19, 2006 12:35 PM
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