Exchange Rate Flu: How Bad?
Many observers tend to blame the exploding U.S. trade deficit on the economic debacle in Asia. And there's little doubt that collapsing exports to the region, along with a pickup in imports, are the main factors behind America's deteriorating trade position. But a closer look at trade statistics suggests that something more may be at work: the erosion of U.S. competitiveness due to shifting currency exchange rates.
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