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The Unsustainability of U.S. Trade Deficits

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  • Quiggin John

    (University of Queensland)

Abstract

Although substantial current account deficits can be sustained indefinitely, large deficits in goods and services trade cannot be. Even to stabilise the current account deficit, the United States must restore balance in goods and services trade within a decade or so. If this adjustment is to be achieved without a crisis, a range of policy adjustments will be needed. Options include a managed devaluation of the US dollar, substantial increases in public and household saving and initiatives to reduce reliance on imported oil and gas.

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Bibliographic Info

Article provided by De Gruyter in its journal The Economists' Voice.

Volume (Year): 1 (2004)
Issue (Month): 3 (December)
Pages: 1-13

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Handle: RePEc:bpj:evoice:v:1:y:2004:i:3:n:2

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Web page: http://www.degruyter.com

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Cited by:
  1. Bollino, Carlo Andrea, 2007. "Oil prices and the U.S. trade deficit," Journal of Policy Modeling, Elsevier, vol. 29(5), pages 729-738.
  2. Bandyopadhyay, Gopal & Bagheri, Fathollah & Mann, Michael, 2007. "Reduction of fossil fuel emissions in the USA: A holistic approach towards policy formulation," Energy Policy, Elsevier, vol. 35(2), pages 950-965, February.

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