Research says falls in housing and equity prices, not exchange rates help reduce US trade imbalances

Researchers at the University of Warwick and the European Central Bank have just published research that shows falls in US asset prices such as housing and equities have a substantially more important role for reducing US trade imbalances than changes in the US dollar exchange rate.

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<p><a href="http://www.physorg.com/news96561051.html">Research says falls in housing and equity prices, not exchange rates help reduce US trade imbalances</a></p> <p>Researchers at the University of Warwick and the European Central Bank have just published research that shows falls in US asset prices such as housing and equities have a substantially more important role for reducing US trade imbalances than changes in the US dollar exchange rate. </p>