送交者: 吴礼 于 2005-5-31, 12:17:39:
回答: I suppose these are all tight to the value of dollar. 由 Europeanese 于 2005-5-31, 11:27:58:
If budget deficit is the cause of trade deficit, are we counting twice by adding the two deficits up?
Budget deficit is the money that a Governemt owe to bond holders (domestic or international). Trade deficit is the difference between the purchase and sell from all entities (not only the Government) of a country. How do these numbers add up to?
U.S. budget deficit this year is 3.6% of GDP. How does this compare with other nations? Do you have any figures?
Suppose everyone wanted to use US dollar as investment (i.e., when one gets dollar by selling the goods, instead of using it to buy goods, he uses it to buy US stock or bonds). In this case, how would US avoid to have a trade deficit?
If people now don't like US dollar anymore as an investment tool, surely they will sell dollor, or use it to buy goods. Certainly, dollor will fall, and trade balance will be restored (or even reversed). The question is: how much will dollor fall to restore the balance?