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Suppose the U.S. dollar depreciates moderately against the euro. The most likely outcomes might be: (a) upward price on U.S. prices and more U.S. exports
Suppose the U.S. dollar depreciates moderately against the euro. The most likely outcomes might be: (a) upward price on U.S. prices and more U.S. exports to the Eurozone; (b) large-scale intervention by the U.S. monetary authorities to cause the dollar to depreciate further; (c) more Eurozone inflation and more exports from the Eurozone to the U.S.; (d) more rapid inflows of capital from the Eurozone into the U.S.
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