Decline in Value of Dollar Could Threaten Global Economy

A report by The Organization for Economic Cooperation and Development (OECD), an alliance of developed countries, has reported that a sudden decline in the value of the dollar could threaten the global economy.
The organisation is concerned about the size of the US current account deficit - the difference between the value of imported and exported goods and services. In the US, demand for cheaper Asian products is exceeding sales of domestic goods.
According to the OECD’s chief economist, Jean-Philippe Cotis, this imbalance increases the chance that the value of the dollar could suddenly fall - reducing both net exports and domestic demand in Japan and Europe.
The OECD recommends focusing on increasing domestic demand, rather than on stimulating exports, and allowing currencies to strengthen in thriving Asian economies. [via MoverMike]