A record current account deficit: causes and implications
AbstractThe U.S. current account deficit was at a record level in 1999 and is expected to increase further in 2000. How large can this deficit get? Will an eventual adjustment in the deficit place the U.S. economy at risk? This article examines three arguments often put forth to explain the increase in the deficit--a consumption boom, the U.S. as a safe haven for short-term foreign capital and technological change affecting the U.S. economy. The authors find the strongest evidence in support of technological change and suggest why, under these conditions, an economic adjustment to the deficit need not to have as adverse an impact as some observes fear.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Federal Reserve Bank of Chicago in its journal Economic Perspectives.
Volume (Year): (2000)
Issue (Month): Q IV ()
Contact details of provider:
Postal: P.O. Box 834, 230 South LaSalle Street, Chicago, Illinois 60690-0834
Web page: http://www.chicagofed.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Reuven Glick & Kenneth Rogoff, 1993.
"Global Versus Country-Specific Productivity Shocks and the Current Acocount,"
Boston University - Institute for Economic Development
31, Boston University, Institute for Economic Development.
- Glick, Reuven & Rogoff, Kenneth, 1995. "Global versus country-specific productivity shocks and the current account," Journal of Monetary Economics, Elsevier, vol. 35(1), pages 159-192, February.
- Reuven Glick & Kenneth Rogoff, 1992. "Global Versus Country-Specific Productivity Shocks and the Current Account," NBER Working Papers 4140, National Bureau of Economic Research, Inc.
- Reuven Glick & Kenneth Rogoff, 1993. "Global versus country-specific productivity shocks and the current account," International Finance Discussion Papers 443, Board of Governors of the Federal Reserve System (U.S.).
- Reuven Glick & Kenneth Rogoff, 1992. "Global versus country-specific productivity shocks and the current account," Working Papers in Applied Economic Theory 92-06, Federal Reserve Bank of San Francisco.
- Baxter, Marianne, 1995. "International trade and business cycles," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 35, pages 1801-1864 Elsevier.
- Jack L. Hervey & Michael A. Kouparitsas, 2000. "Should we be concerned about the current account?," Chicago Fed Letter, Federal Reserve Bank of Chicago, issue Apr.
- Jack L. Hervey, 1986. "The internationalization of Uncle Sam," Economic Perspectives, Federal Reserve Bank of Chicago, issue May, pages 3-14.
- Marianne Baxter, 1995.
"International Trade and Business Cycles,"
NBER Working Papers
5025, National Bureau of Economic Research, Inc.
- Obstfeld, Maurice & Rogoff, Kenneth, 1995.
"The intertemporal approach to the current account,"
Handbook of International Economics,
in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 34, pages 1731-1799
- Maurice Obstfeld & Kenneth Rogoff, 1994. "The Intertemporal Approach to the Current Account," NBER Working Papers 4893, National Bureau of Economic Research, Inc.
- Maurice Obstfeld and Kenneth Rogoff., 1994. "The Intertemporal Approach to the Current Account," Center for International and Development Economics Research (CIDER) Working Papers C94-044, University of California at Berkeley.
- Francois R. Velde, 1999. "Americans are not saving: should we worry?," Chicago Fed Letter, Federal Reserve Bank of Chicago, issue May.
- Owen F. Humpage, 1998. "Is the current-account deficit sustainable?," Economic Commentary, Federal Reserve Bank of Cleveland, issue Oct.
- Michael A. Kouparitsas, 1999. "Is there evidence of the new economy in the data?," Working Paper Series WP-99-22, Federal Reserve Bank of Chicago.
- Annie Corbin, 2003. "Statut de monnaie de réserve du dollar et seigneuriage américain : bilan et perspectives," Revue d'Économie Financière, Programme National Persée, vol. 72(3), pages 265-276.
- Abdelaziz Rouabah, 2005. "Les déterminants du solde de la balance des transactions courantes au Luxembourg," BCL working papers 13, Central Bank of Luxembourg.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bernie Flores).
If references are entirely missing, you can add them using this form.