Goldman Sachs Says Dollar Could Fall by 6% in 2021

The transcript discusses the anticipated impact of a vaccine-led recovery on the global economy, highlighting potential inflation scenarios and the role of fiscal stimulus. It emphasizes the importance of a safe and effective vaccine over current economic stimulus measures, predicting a broad recovery in sectors affected by the pandemic. The discussion also covers the expected weakening of the dollar as global growth picks up, with flows moving from safe havens to riskier assets.

What is the expected impact of a vaccine-led recovery on global markets?

• An immediate rise in core inflation

• A decrease in commodity prices

• A strong bounce back in the global economy

• A decline in market volatility

How might the outcome of the Georgia runoff elections affect fiscal stimulus?

• It would have no impact on inflation expectations

• It could lead to a smaller fiscal stimulus

• It might result in no change to fiscal policy

• It could bring a larger fiscal stimulus back onto the table

Why is a safe and effective vaccine considered more crucial than fiscal stimulus for economic recovery?

• It leads to immediate tax cuts

• It decreases the need for international trade

• It boosts confidence and reduces the need for lockdowns

• It directly increases government spending

Which sectors are expected to recover rapidly with the rollout of a vaccine?

• Real estate and construction

• Transportation and leisure

• Agriculture and mining

• Technology and finance

What is the predicted trend for the U.S. dollar as global recovery progresses?

• The dollar will strengthen significantly

• The dollar will remain stable

• The dollar will weaken by about 5 to 6%

• The dollar will become a more attractive safe haven