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Unformatted text preview: isputed. Thus, both Yoshikawa in this issue and Krugman (1998) argue that the country’s
potential is much higher.
These figures show the surplus on trade in goods and services as measured in the national accounts. The balance of payments
current-account surplus was closer to 3 per cent of GDP over these 2 years. 4 A. Boltho and J. Corbett Table 2
(in per cent of current price GDP)
1960–73 1974–90 1991–9 1960–99 Gross domestic savings
Gross domestic investment 36.1
30.9 General government net lending
Private sector balance 1.0
2.3 Sources: OECD, National Accounts of OECD Countries, Historical Statistics, and Economic Outlook
This state of affairs raises two main problems. First,
there are clear limits to the extent to which currentaccount surpluses and public-sector deficits can
further expand. Abroad (particularly in the United
States), there has long been strong resistance to
Japan’s large external surpluses. The wrongheadedness of such attitudes, which put obstacles to
the free flow of Japanese savings to the rest o...
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This note was uploaded on 02/03/2014 for the course ECON 204 taught by Professor Devero during the Summer '13 term at American University of Sharjah.
- Summer '13