Monetary inflation always results in a trade deficit and the United States is the poster child. This is why the Germans are fighting so hard to stop the ECB from inflating Europe's way out of their current mess.
The Germans know full well that rising domestic prices and wages will make them uncompetitive in world markets and will cause the domestic consumption of imports to rise.
Too many people on this board still think tariffs are the way to cure our trade deficit. They're wrong. Stabilizing the dollar is the only answer.
“Too many people on this board still think tariffs are the way to cure our trade deficit. They’re wrong.”
Yep- they still haven’t learned from the failures of Smoot-Hawley.