The U.S. dollar has depreciated by about 30% over the last 8 years, and during that time period U.S. exports as a share of GDP increased from about 9% in 2002 to 13.2% in mid-2008, and then fell through early 2009 as a result of the recession and a stronger dollar (see chart). Since early 2009, the dollar's decline has continued, and exports as a share of GDP have been increasing. Is the U.S. guilty of manipulating its currency to increase exports?
Note: The chart has been updated to reflect U.S. exports as share of GDP on a quarterly basis. I previously divided quarterly exports by annual GDP, and have corrected the data and chart above. Thanks to Scott Grannis.
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