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As I Was Saying... by Michael Czinkota

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Dollar Devaluation: Cure for Trade Deficit?

Originally published in The Japan Times, January 25, 1986. Used with permission of Michael R. Czinkota and The Japan Times.

With a projected 1985 trade deficit of over $140 billion, the U.S. is desperately seeking a cure for its chronic trade imbalances. In search of causes for the deficit, various suggestions have been paraded in front of us.

At first, Japan was blamed because of its use of market targeting practices and its market access restrictions. After much public debate, it was concluded that these practices only accounted for a portion of the trade deficit. After all, our deficits with other ...

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