ESSAYS

1)In April 2009 the trade deficit of the United State was reported to be $29.2billion.The trade deficit with China for the same month was $16.75 billion. The trend is certain to continue for the foreseeable future.As such, there is a pressure on the US economy that worsens already weak job market.The US officials blame part of this on Chinese government's refusal to allow the Yuan to float freely and accordingly appreciate against the US dollar.Explain why this trade deficit might be considered as a contributor to unfavorable economic situation in the US and why appreciation of Chinese currency might help to alleviate this situation.

2)From time to time countries experience hyperinflation.Germany, Hungry, Israel, Brazil, Argentina, and Zimbabwe are just few examples from a long list.If you find yourself in a position to give advise to cure such inflation, what would you recommend and why?