[lbo-talk] GS on the dollar

[Seth Ackerman]

Doug quoted:

> >DAILY FINANCIAL MARKET COMMENT 05/20/03 Goldman Sachs Economics

The thing I don't get about the dollar's drop against the euro is how it's
supposed to do much about the trade deficit, when something like three
quarters of the deficit is with five or so East Asian countries -- most of
whose currencies so far haven't risen very much (and China's hasn't changed
at all, of course). Europe doesn't account for much of our trade deficit.
Yet most of the dollar's slide has happened there. The only thing I can
think of is that it could pressure the ECB to cut interest rates.

Seth