The dollar is likely to be on a downtrend over the long term as the United States faces a massive fiscal burden from its efforts to recover from the financial crisis and to pay for its wars overseas, experts told a recent seminar in Tokyo.
The financial crisis has put in doubt the mechanism under which the U.S. economy has for so long attracted funds from abroad to make up for the shortage in domestic savings, and finance its investments and consumption, they said.
Eiji Ogawa, a professor of Hitotsubashi University Graduate School of Commerce and Management, and Jitsuro Terashima, chairman of the Japan Research Institute, discussed the global financial crisis and Japan's possible responses during the Feb. 13 seminar organized by the Keizai Koho Center.