Weaker Dollar
A rising national debt often leads the U.S. government to weaken the dollar as a means of reducing the cost of its debt. When the value of the dollar falls, the government can pay back the debt with cheaper dollars.
A falling dollar also makes U.S. exports more attractive to overseas buyers. That’s because the currencies of foreign countries typically rise when the dollar falls, meaning overseas buyers can purchase more goods for the same amount of foreign currency. This brings more foreign money into the U.S. economy, helping to stave off economic declines.
