japan's trade supluses

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during the 1980's the devaluation of the u.s. dollar helped or hindered the u.s. competiveness in japan

-- ricardo nigaglioni (rickynigaglioni@hotmail.com), October 09, 2003

Answers

If the U.S. dollar devalued against the yen during the 1980's that would be news to me.

I am 100% certain that during the 7 year period from 1980 to 1986 the US dollar rose sharply vs. most European currencies.

Still if a currency devalues then that country's products become cheaper and thus more competitive. Why? If you want to buy US good, first you need US dollars or their foreign or commodity equivalents. If the US dollar becomes less expensive US goods becomes less expensive too.

I hope this helps.

~Bob

-- bobhyneman (bobhyneman@bigfoot.com), October 22, 2003.


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-- Valter Salmaso (v.salmaso@libero.it), January 03, 2005.

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