Using a simplified Klein/Fair econometric model of the U.S. economy, estimated using 1960 – 2000 data, the paper finds that the 12.9 percent dollar decline 2000-2009 had a positive effect on exports, but mildly negative effects for domestically produced investment and consumer goods. The estimated overall negative effect on the GDP is modest: 1.7 percent over the nine years, or about a fifth of a percent per year. It is estimated this decline in the dollar reduced the trade deficit $140.7 billion. This decline is estimated to have increased U.S. net asset position by an $88.6 billion.
John J. Heim. "The Declining Exchange Rate: Impact on the U.S. Economy 2000-2009." Proceedings of the New York State Economics Association. vol. 3, September 2010, p. 49-57
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