Debunking the "weaker currency = more exports" myth in 2 seconds...

[SamuelRSmith]

mrstickball said:

There are a lot of other issues that correlate with the huge imbalance in trade, outside of the inflation of the dollar.

A lot of our manufacturing went overseas around that time due to significant changes in manufacturing regulations, hurting our trade balance significantly. I would note also that the debasement of our currency hasn't been so much the problem, as much as it is that other currencies became free-floating due to the cessation of the Bretton Woods system, and the Nixon Shock.

One could cite Japan as a rebuttal to your argument - they are seeing their strongest currency ever, but are a trade deficit for the first time in 30 years, starting in 2011.

Like I've maintained throughout the thread, I am not arguing that debasement of currency decreases exports, I'm basically saying that there is very little link at all between the two things, long term.