I need an answer regarding the effect of the dollar depreciation against the EURO
to the usa economy...taking in consideration katrina hurcain and
rising of oil prices as a shock to the economy.
I need the answer as an outline for my paper, "as a guide to follow to
write my paper" so, no need for details.

The following will be the impacts:

1. Export revenue from European nations shall decrease.
2. Imports from European nations shall be more costly.This however acts as a  
   boon for local industries.
3. However exports to third world country shall improve because of lower 
   currency conversion benefits obtained by those countries for lower $ to 
   higher Euro.
4. Demand for $ will decrease in global market if the depreciation continues 
   for too long and Euro will emerge slowly as a more demanding currency.This 
   may lead to a looping effect - i.e. further devaluation of Dollar.However 
   this is farsighted as American Economy is strong enough to safeguard its 
   Currency.

Well I hope these may be some of the basic effect of Dollar devaluation.