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SINGAPORE — The conditions are ripe for a sharp weakening in the U.S. dollar in the coming year, prominent economist Stephen Roach told CNBC on Tuesday.
The U.S. current account and trade deficits are deteriorating rapidly, while domestic savings are being weighed down further, said Roach, a senior fellow at Yale University. At the same time, the U.S. will likely have to spend more on stimulus to support an economy that's been hit by the coronavirus pandemic, he noted.
"There's no free lunch, we're gonna have to provide foreign investors — who lend us money to fund our deficits — with some incentive for doing so," Roach, a former chairman at Morgan Stanley Asia, told CNBC's "Squawk Box Asia."