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Reconcilable Differences? United States-Japan Economic Conflict


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  • C. Fred Bergsten

    (Peterson Institute for International Economics)

  • Marcus Noland

    (Peterson Institute for International Economics)


United States-Japan economic conflict has four major dimensions: the large global trade imbalances of the two countries, structural differences between them, a large number of sectoral disputes, and their joint responsibility for global prosperity and stability. Two leading experts on United States-Japan economic relations examine the macroeconomic and microeconomic causes of these frictions and assess possible policy responses, including several variants of "managed trade." They stress the differences between the American and Japanese models of capitalism and provide detailed examinations of current conflicts over key industries including automobiles, computers and supercomputers, construction contracting, financial services, and semiconductors.The authors conclude that Japan and the United States are on a collision course. They propose a comprehensive new strategy to resolve the conflict that calls for major changes in macroeconomic, structural, trade, and international economic policies in both countries.

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Bibliographic Info

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This book is provided by Peterson Institute for International Economics in its series Peterson Institute Press: All Books with number 34 and published in 1993.

ISBN: 978-0-88132-129-6
Handle: RePEc:iie:ppress:34

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Cited by:
  1. Warwick Mckibbin & Dominick Salvatore, 1995. "The global economic consequences of the Uruguay Round," Open Economies Review, Springer, vol. 6(2), pages 111-129, April.
  2. Deborah L. Swenson, 1996. "Explaining Domestic Content: Evidence from Japanese and U.S. Auto Production in the U.S," NBER Working Papers 5495, National Bureau of Economic Research, Inc.
  3. Byron Gangnes & F. Gerard Adams, 1994. "Japan's Persistent Trade Surplus: Policies for Adjustment," Working Papers 199404, University of Hawaii at Manoa, Department of Economics.
  4. Douglas A. Irwin, 1994. "Trade Politics and the Semi-conductor Industry," University of Chicago - George G. Stigler Center for Study of Economy and State 92, Chicago - Center for Study of Economy and State.
  5. Marcus Noland & Howard Pack, 2002. "Industrial Policies and Growth: Lessons from International Experience," Working Papers Central Bank of Chile 169, Central Bank of Chile.
  6. Byron Gangnes & Craig Parsons, 2004. "Have US-Japan Trade Agreements Made a Difference?," Working Papers 200403, University of Hawaii at Manoa, Department of Economics.
  7. Ito, Hiro, 2009. "U.S. current account debate with Japan then, with China now," Journal of Asian Economics, Elsevier, vol. 20(3), pages 294-313, May.
  8. Douglas A. Irwin, 1996. "Trade Policies and the Semiconductor Industry," NBER Chapters, in: The Political Economy of American Trade Policy, pages 11-72 National Bureau of Economic Research, Inc.
  9. Gunther Schnabl & Indira Gurbaxani, 1998. "Goals, decision-making mechanisms and instruments in the Japanese-American trade conflict," Intereconomics: Review of European Economic Policy, Springer, vol. 33(3), pages 126-135, May.
  10. Masaharu Hanazaki & Akiyoshi Horiuchi, 2001. "Can the Financial Restraint Hypothesis Explain Japan's Postwar Experience?," CIRJE F-Series CIRJE-F-130, CIRJE, Faculty of Economics, University of Tokyo.
  11. Sven Arndt, 1996. "North American Free Trade: An assessment," Open Economies Review, Springer, vol. 7(1), pages 77-92, January.
  12. Rodrik, Dani, 1994. "What does the Political Economy Literature on Trade Policy (Not) Tell Us That We Ought to Know?," CEPR Discussion Papers 1039, C.E.P.R. Discussion Papers.
  13. Takemori, Shumpei & Tsumagari, Masatoshi, 1997. "A political economy theory of foreign investment: An alternative approach," Japan and the World Economy, Elsevier, vol. 9(4), pages 515-531, December.


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