Global Demand for Dollars Doesn’t Turn on Rates
In our previous column, we explained why the claim that tax cuts necessarily lead to higher interest rates—and thus trade deficits—is far from settled. But what about the next step in the argument: that a larger deficit leads to a stronger dollar, which then widens the trade gap? That link, too, doesn’t hold up.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.
Login if you have purchased
