The U.S. real effective exchange rate is at its highest level since 1985. In that year, the U.S. and its trading partners coordinated a depreciation of the dollar and the U.S. agreed to reduce its budget deficit. This paper reports that a dollar depreciation today would still improve U.S. trade...

Japan exports sophisticated capital goods. Since the Global Financial Crisis (GFC), Japanese companies have offshored the production of lower-end goods and parts and components to Asian countries. Because of this, several researchers argued that a weaker yen no longer stimulates machinery...

The lion's share of smartphones, computers, televisions, semiconductor devices, and other electronics goods is made in East Asia. Final electronics goods are assembled in China, and sophisticated parts and components (P&C) such as semiconductor chips, image sensors, and ceramic filters in...