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Brad Setser: Exchange rates influence U.S. tourism flows as World Cup offsets impact
Brad Setser highlights how exchange rates affect trade flows, with a particular focus on tourism, which is classified as services trade.
He also points to the World Cup as providing an offset to these changes and adds that the difficulties of navigating U.S. airports may contribute to the situation.
Setser has previously observed that China requires large-scale exports to balance its increased supply, raising concerns about global trade imbalances, as detailed in one analysis. In a separate report, he examined China's dependence on net exports for growth and questioned traditional expectations for global trade in that context (link). These points frame his recent focus on how exchange rates shape patterns in both goods and services trade.
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