Weak Dollar Alone Won't Fix Trade Gap, New York Federal Reserve Study Says

(Bloomberg) -- A weaker dollar is unlikely to close
the U.S. trade deficit because foreign exporters have a long-term
interest in maintaining market share in America, the New York
Federal Reserve Bank said in a research note released today.

``Evidence suggests that a weaker dollar will boost foreign
demand for U.S. exports, but this adjustment by itself is
unlikely to close the deficit,'' wrote New York Fed economist
Linda Goldberg and Eleanor Wiske Dillon, a Ph.D. candidate at the
University of Michigan who previously worked at the Fed.


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