Topic 11-Balance of Payments

Topic 11-Balance of Payments - International Trade Balance...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
International Trade Balance of Payments
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Comments: The U.S. trade deficit is the counterpart to low U.S. savings. U.S. consumption and other components of expenditure have been growing faster than U.S. income in the last decade What does that mean?
Background image of page 2
Should we worry? "We need a more collaborative effort among the differing economies, particularly among the major economies, for a long-term gradual adjustment that has to balance both deficit and surplus economies," says UN Undersecretary-General for Economic Affairs Jose Antonio Ocampo. "The U.S. will have to adjust and will adjust."
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Sounds so different: Few subjects in economics have caused so much confusion—and so much groundless fear—in the past four hundred years as the thought that a country might have a deficit in its balance of payments. This fear is groundless for two reasons: (1) there never is a deficit, and (2) it wouldn't necessarily hurt if there were. Herbert Stein, senior fellow at the American Enterprise Institute in Washington, D.C. He was chairman of the Council of Economic Advisers under Presidents Nixon and Ford.
Background image of page 4
Balance of Payments Accounts The
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 27

Topic 11-Balance of Payments - International Trade Balance...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online