Money Supply According to the Research Paper

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gov 2010). In recent years (with the exception of 2009, when the deficit was reduced considerably due to a massive slowdown in consumer spending in the United States), this deficit has risen dramatically, from over ten billion dollars in 1990 to well over two-hundred billion dollars ($200 billion) presently, and for much of the past decade (Export.gov 2010). The United States' trade with the European Union is less clear cut, as information is still reported by country rather than with the European collective community as a whole, but there appears to be more actual balance in the trade balance between the United States and the European Union, with trade deficits existent for many countries (particularly Germany, Italy, and Austria) and trade surpluses with others (notably the United Kingdom and Spain) (Exports.

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gov 2010). The deficits due to tend to outweigh the surpluses in dollar amounts over the twenty-year period, however, suggesting that there is a definite overall deficit in the United States' trade relationship with the European Union (Exports.gov).

This can be seen as directly related to the changing currency values of the United States dollar compared to the Euro and the Yuan. The consistency of the dollar's fall against the Yuan over the past twenty years is a definite reflection of the trade deficit, with the pace of the value change a result of China's controlled monetary policy. The Euro and the dollar have had amore naturally volatile relationship, with some give and take from both sides, reflecting the market freedom of both currencies......

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