This article introduces a new term 'structural' for describing the US trade deficit.
Essentially if a country is to have their currency as the world's reserve currency then they have to run at a deficit.
Since all those extra dollars that get printed go overseas they are not in the US economy to cause price inflation, i.e. too much money chasing too few goods.
Essentially if a country is to have their currency as the world's reserve currency then they have to run at a deficit.
Since all those extra dollars that get printed go overseas they are not in the US economy to cause price inflation, i.e. too much money chasing too few goods.
https://qz.com/1266044/why-does-the-us-run-a-trade-deficit-t...