To put things in the right context, 33% decline in dollar (real inflation) hasn’t resulted in actual inflation as China/Japan tied their currency to dollar, thus keeping prices of most everyday items under check. Curency markets are extremely volatile though and dollar may bounce back. For 3 months, it had been going up against all currencies but the GDP numbers changed the picture and reversed trend. I was hoping a Dems victory may help dollar by bringing hopes of govt spending under check.
What impact will a sharp dollar decline have on housing markets in the US? I consider 35% in 4 years to be pretty steep for a major currency. What effect did it have on the markets in the last 4 years (if any)?
