Author: Publisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
America’s Growing Current Account Deficit
Author: Is the U.S. Trade Deficit Sustainable?
Author: Catherine L. MannPublisher: Peterson Institute
ISBN: 9780881322644
Category : Business & Economics
Languages : en
Pages : 226
Book Description
The global financial crisis of 1997-98 and the widening US trade deficit have precipitated fresh inquiry into a set of perennial questions about global integration and the US economy. How has global integration affected US producers and workers, and overall growth and inflation? Is a chronic and widening deficit sustainable, or will the dollar crash, perhaps taking the economy with it? If the problem was one of "twin deficits," as many thought, why has the trade deficit continued to grow even as the budget deficit narrowed to zero? If US companies are so competitive, why does the trade deficit persist? Is the trade deficit a result of protectionism abroad? Will it lead to protectionism at home? What role do international capital markets have? Each chapter presents relevant data and a simple analytical framework as the basis for concise discussions of these major issues. The final section of the book provides an outlook for the deficit and suggests alternative policy courses for dealing with it. This book is designed for policymakers and others who are interested in the US role in the world economy. It is also suitable for courses in international economics, business, and international affairs.
The U.S. Current Account Deficit and the Global Economy
Author: Lawrence H. SummersPublisher:
ISBN:
Category : Balance of payments
Languages : en
Pages : 40
Book Description
The Dot-com Bubble, the Bush Deficits, and the U.S. Current Account
Author: Aart KraayPublisher: World Bank Publications
ISBN:
Category : Balance of payments
Languages : en
Pages : 47
Book Description
The authors challenge this view here and develop two alternative interpretations. Both are based on the notion that a bubble (the "dot-com" bubble) has been driving the stock market, but differ in their assumptions about the interactions between this bubble and fiscal policy (the "Bush" deficits). The "benevolent" view holds that a change in investor sentiment led to the collapse of the dot-com bubble and the Bush deficits were a welfare-improving policy response to this event. The "cynical" view holds instead that the Bush deficits led to the collapse of the dot-com bubble as the new administration tried to appropriate rents from foreign investors. The authors discuss the implications of each of these views for the future evolution of the U.S. economy and, in particular, its net foreign asset position."
U.S. Current Account Deficit
Author: Sankha Nath BandyopadhyayPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
United States current account deficit stood at 6.5 per cent of her Gross Domestic product (GDP) in 2005, which is almost twice of her last highest deficit in 3.4 per cent of GDP in 1987. The deficit is primarily grown due to huge merchandise trade deficit which is increasing since 1991s. Several reasons have put forward in order to explain this deficit, for e.g. U.S. budget deficits, low private household savings, increased savings by the rest of the world, China's pegged exchange rate etc. It seems that global economy, particularly emerging economies have grown at the expense of the U.S. current account balance. An important issue is how long this deficit will continue and to what extent other economies will be affected when correction begins. An adjustment with or without government intervention would lead to a substantial depreciation of dollar, which implies a downgrading of dollar as an 'international reserve currency.' The U.S. current account deficit is largely financed through the portfolio investment by the international investors. If the U.S. current account deficit continues, investors may expect dollar to fall further. This indicates a decline in the dollar denominated assets. Though this potential fear appears insignificant at present given that U.S. is a 'safe haven' for international investors, in future this possibility cannot be withered. A huge depreciation of dollar may reduce the deficit, but at the expense of particularly Canada, Mexico, Japan and euro countries in as much as the currencies of these countries are supposed to appreciate most against the dollar, which would affect their export competitiveness. On the other hand, the emerging economies, particularly China, Malaysia and Taiwan are unlikely to be affected given their policy of pegging rates against the dollar.
Foreign Exchange Value of the Dollar
Author: Untangling the US Deficit
Author: Richard A. IleyPublisher: Edward Elgar Publishing
ISBN: 1847207057
Category : Business & Economics
Languages : en
Pages : 285
Book Description
The book would be a good companion text for an undergraduate class in international finance or open-economy macroeconomics. Catherine L. Mann, Journal of Economic Literature Untangling the US Deficit is a unique and well-researched book and will be of great interest to academic economists and postgraduates. Policymakers, business and market economists will also find it an enlightening and challenging analysis. sirreadalot.org The book is written in a very accessible fashion, even though the authors strive to accommodate competing and complex views on the causes and cures of the US external deficit, which makes for enjoyable and informative reading. Their reliance on data, charts and bibliography result in persuasive arguments. Recommended. General readers; upper-division undergraduates through practitioners. A. Sharma, Choice What are the causes of the US current account deficit? Are the problems made in the US or the rest of the world? Are these deficits sustainable, at what level? These are the types of questions the authors set out to answer, and in essence conclude that the answers do not matter for global stability as long as imbalances are left to market forces and the US can avoid large net income outflows. The beauty of this book, however, is watching the authors (the unusual combination of a business economist and an academic economist) arrive at this conclusion. They provide insights that can come only from years of practical and theoretical experience. William E. Becker, Indiana University Bloomington, US As the US current account deficit has expanded to a record level of $811 billion in 2006, debate about the deficit s causes and consequences has also grown. Is the deficit a product of American profligacy or a glut of savings in the rest of the world? Is it a serious problem or essentially benign? Untangling the US Deficit charts a course between the competing explanations in a systematic and rigorous approach, incorporating the latest academic research and market data. Particular attention is given to the China United States trade imbalance and to the special role of the US dollar and US capital markets in global finance. This unique and well-researched book will be of great interest to academic economists and postgraduates. Policy-makers, business and market economists will also find it to be an enlightening and challenging account.
G7 Current Account Imbalances
Author: Richard H. ClaridaPublisher: University of Chicago Press
ISBN: 0226107280
Category : Business & Economics
Languages : en
Pages : 518
Book Description
The current account deficit of the United States is more than six percent of its gross domestic product—an all-time high. And the rest of the world, including other G7 countries such as Japan and Germany, must collectively run current account surpluses to finance this deficit. How long can such unevenness between imports and exports be sustained, and what form might their eventual reconciliation take? Putting forth scenarios ranging from a gradual correction to a crash landing for the dollar, G7 Current Account Imbalances brings together economists from around the globe to consider the origins, status, and future of those disparities. An esteemed group of collaborators here examines the role of the bursting of the dot-com bubble, the history of previous episodes of current account adjustments, and the possibility of the Euro surpassing the dollar as the leading international reserve currency. Though there are areas of broad agreement—that the imbalances will ultimately decline and that currency revaluations will be part of the solution—many areas of contention remain regarding both the dangers of imbalances and the possible forms of adjustment. This volume will be of tremendous value to economists, politicians, and business leaders alike as they look to the future of the G7 economies.
The U.S. Trade Deficit
Author: U.S. Trade Deficit Review CommissionPublisher:
ISBN:
Category : Balance of trade
Languages : en
Pages : 342
Book Description
"Report of the U.S. Trade Deficit Review Commission, November 14, 2000"--Cover p. [2].
The American Economy
Author: Anton BrenderPublisher: Centre for European Policy Studies
ISBN: 9789461386755
Category : Political Science
Languages : en
Pages : 136
Book Description
Each year, 25% of the world's output is produced by less than 5% of the planet's population. The juxtaposition of these two figures gives an idea of the power of the American economy. Not only is it the most productive among the major developed economies, but it is also a place where new products, services and production methods are constantly being invented. Even so, for all its efficiency and its capacity for innovation, the United States is progressively manifesting worrying signs of dysfunction. Since the 1970s, the American economy has experienced increasing difficulty in generating social progress. Worse still, over the past twenty years, signs of actual regression are becoming more and more numerous. How can this paradox be explained? Answering this question is the thread running throughout the chapters of this book. Anton Brender and Florence Pisani, economists with Candriam Investors Group, offer the reader an overview of the history and structure of the American economy, guided by a concern to shed light on the problems it faces today.