6 these figures show the surplus on trade in goods

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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. 6 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 Sectoral Balances (in per cent of current price GDP) 1960–73 1974–90 1991–9 1960–99 Gross domestic savings Gross domestic investment 36.1 35.4 32.1 30.8 30.5 27.8 33.1 30.9 General government net lending Foreign balance Private sector balance 1.0 0.7 –0.3 –1.9 1.3 3.2 –2.7 1.7 5.4 –1.1 1.2 2.3 Sources: OECD, National Accounts of OECD Countries, Historical Statistics, and Economic Outlook (various issues). 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.

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