Twin deficits (trade and budget deficits) and dollar
surge dominated the first half of the 1980s. Are we in for a repeat in 2017?
“Parallels between
Donald Trump's U.S. economic plan and early 1980s Reaganomics have supercharged
the dollar, reminding some that its rampant gains 30 years ago eventually
required intervention to reverse them.”--
The chart below highlights the massive swings in the real dollar index during the 1980s. It also shows the US trade balance fluctuations during that tumultuous decade:
