Comments on: Gorging on imports http://blog.greens.org.nz/2005/04/29/gorging-on-imports/ hopping along the corridors of power Sat, 22 Nov 2008 04:14:03 +0000 http://wordpress.org/?v=2.3.3 By: Steve W http://blog.greens.org.nz/2005/04/29/gorging-on-imports/#comment-285 Steve W Sun, 01 May 2005 11:38:26 +0000 http://blog.greens.org.nz/2005/04/29/gorging-on-imports/#comment-285 It makes sense that we currently have a trade deficit. Our dollar is high, meaning that our dollar is benefitting importers, and harming exporters. When this drops, then exports will rise. Moreover, the idea of a floated exchange rate is that the current account deficit is sorted out by changing exchange rates. In this respect, current account deficits are largely defunct economic terms reminiscent of the days of government control. Well... in the mind of a 1st year economics student anyway. It makes sense that we currently have a trade deficit. Our dollar is high, meaning that our dollar is benefitting importers, and harming exporters. When this drops, then exports will rise.

Moreover, the idea of a floated exchange rate is that the current account deficit is sorted out by changing exchange rates. In this respect, current account deficits are largely defunct economic terms reminiscent of the days of government control.

Well… in the mind of a 1st year economics student anyway.

]]>