Study of U.S.Dollar exchange rate’s impact on American trade balance

Author(s): Lin Wen

From the turnout of the study, the four main factors of U.S. dollar exchange rate, inertia of U.S. trade balance, American relative commodity prices and relative output affect U.S. trade balance. Furthermore, the inertia of trade is the most important factor that affect the U.S. trade balance. The government of U.S.must use mixed policy to adjust U.S. trade balance deficit not only through the depreciate of U.S. dollar exchange rate in a short time.

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