With the U.S. trade deficit at high levels, many look to a dollar depreciation to curb the U.S. appetite for foreign … goods by pushing up the cost of imports. Yet three factors -- the use of the dollar in invoicing U.S. trade, the market … reduce demand significantly. Evidence suggests that a weaker dollar will boost foreign demand for U.S. exports, but this …

account deficit, currently running at nearly 6% of GDP, the potential collapse of the dollar becomes considerably larger (more … help in mitigating the dollar decline that will almost inevitably occur in the wake of global current account adjustment … current account shifts depend mainly on the flexibility and global integration of goods and factor markets. Whereas the dollar …