US Dollar remained artificially strong

Some of the Asian proceeds from US spending on Asian imports were used to build up foreign currency reserves in the US dollar, and the demand kept the US dollar artificially strong and made Asian imports continue to appear cheap to US consumers.

RELATED ARTICLESExplain
The Global Financial Crisis
Long-term causes of the financial crisis?
Unintended consequences of earlier public policy choices
US spending funded by credit
People encouraged to live beyond their means
Cost of borrowing low
Asian investment in US treasuries
Positive feedback loop with US buying Asian-produced imports
US Dollar remained artificially strong
Influx of Asian money into the US market
Graph of this discussion
Enter the title of your article


Enter a short (max 500 characters) summation of your article
Enter the main body of your article
Lock
+Comments (0)
+Citations (0)
+About
Enter comment

Select article text to quote
welcome text

First name   Last name 

Email

Skip