Comment by digital-cygnet

Comment by digital-cygnet 2 days ago

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I don't see the argument here. Importing less leads to selling less USD (yes), somehow leading to devaluation of USD? Is the implication that the dollar is strong because the US government "forces others" (foreign manufacturers) to buy it? Isn't that the opposite of the first thought, which implied that "selling less printed USD" was the reason that domestic manufacturing would be inflationary? I don't understand the causality, and it doesn't match my mental model ("a country that can build things domestically at a competitive price point should be deflationary because now there is more supply of stuff and equal supply of money"), so I think this could do with some expanding.