IMF expects the US current-account deficit to hit 2.6% of GDP in 2020
Notwithstanding a strong political commitment to European unification as the antidote to a century of war and devastating bloodshed, there was always a critical leg missing from the EMU stool: fiscal union.
Not anymore.
The historic agreement reached on July 21 on a €750 billion ($868 billion) European Union recovery fund, dubbed Next Generation EU, changes that – with profound and lasting implications for both an overvalued US dollar and an undervalued euro.
My prediction of a 35% drop in the broad dollar index is premised on the belief that this is just the beginning of a long-overdue realignment between the world’s two major currencies.
IMF expects the US current-account deficit to hit 2.6% of GDP in 2020, the EU is expected to run a current-account surplus of 2.7% of GDP
Stephen S. Roach Project Syndicate 22 July 2020
SCB: Sveriges bytesbalans som andel av BNP uppgår det första kvartalet 2020 till 4,6 procent
Not anymore.
The historic agreement reached on July 21 on a €750 billion ($868 billion) European Union recovery fund, dubbed Next Generation EU, changes that – with profound and lasting implications for both an overvalued US dollar and an undervalued euro.
My prediction of a 35% drop in the broad dollar index is premised on the belief that this is just the beginning of a long-overdue realignment between the world’s two major currencies.
IMF expects the US current-account deficit to hit 2.6% of GDP in 2020, the EU is expected to run a current-account surplus of 2.7% of GDP
Stephen S. Roach Project Syndicate 22 July 2020
SCB: Sveriges bytesbalans som andel av BNP uppgår det första kvartalet 2020 till 4,6 procent
Kommentarer