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I think Chinese currency will not improve the U.S. trade deficit, and instead it will worsen the living standard in the world. The main reason why the U.S. has huge trade deficit is the natural consequence of larger macroeconomic forces within the U.S. economy.
The United States has posted a trade deficit since the 1970s, and it has been rapidly increasing since 1997. The U.S. trade deficit hit a record high of 763.6 billion dollars in 2006, up from 716.7 billion dollars in 2005. The huge deficits have been increasing not only vis-a vis China but also most other trading partners as well (Mann, 2005); the imbalance on bilateral trade with China, though large, still accounts for less than one-quarter of the total...
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