Associated Press Forbes
Desmond Lachman | AEIdeas
An all too likely casualty of the coronavirus epidemic will be President Trump’s oft-repeated promise of promoting a more competitive US dollar and eliminating the US trade deficit. Indeed, if the coronavirus epidemic is not soon brought under control, we must expect a much stronger US dollar and a widening in the US trade deficit. Any slowing in the Chinese economy as a result of the coronavirus is bound to have a much larger adverse effect on the Asian and German economies than it will on that of the United States. This is bound to induce a much easier monetary policy stance in Asia and Europe than that in the United States.