US Economy Analysis

The USA inflation has fallen to 0.2% in 2015, however, the utility price have remained constant. Rather it was attributed to plunging oil prices. These factors combined with low prices from commodities, imported food, energy, are expected to further push down inflation, and a possibility of deflation. This will make life easier for any form of formal employment.

The U.S.A external sector (X-M) is analyzed via Trade Balances and Exchange Rates (ER). The Dollar appreciation, especially against Euro, leads to increasingly expensive exports causing negative trade balances. Inflationary pressure and the role of trade exports are predicted to be minimal, as USís major trading partners are experiencing minimal recovery. The Eurozone, among the U.S.Aís largest export market is experiencing negative inflation and low levels of short-term Interest Rates. In USA, GDP and unemployment indicators improved slightly. Chinaís growth is slow as two major sectors; investment and construction are ...