1. The US dollar
The major problem for the US government is the importance of the budget deficit. ... The reason of the actual depreciation comes from the strong government deficit which represents 4.6% of the GDP (from a surplus of 2.4% in 2000), and a huge trade deficit ($500billions). ... The Asian central banks and more precisely Japan is massively acting on the dollars in order to stabilize its exchange rate with the yen. ... The 4 biggest Asian economies (Japan, China, Taiwan, South Korea) have now more than 1500billions in reserve (with 50% for Japan) which is twice as much as the foreign exchange reser...
- Word Count: 777
- Approx Pages: 3
- Grade Level: Undergraduate