An opinion column in the Washington Post notes that the U.S. dollar is “the world’s dominant international currency.” The column also argues that, as a result, “we constantly run sizable trade deficits; and … U.S. manufacturers often are at a price disadvantage with foreign competitors.”
a. In what sense is the dollar the world’s dominant currency?
b. What is the connection between the dollar’s dominance and the United States running trade deficits?