The US Economy: A Changing Strategic Predicament
AbstractRight through the boom years prior to 2001, the U.S. economy faced a strategic predicament in that the main engine of growth (credit financed private spending) was unsustainable, from which it followed that the whole stance of U.S. fiscal policy would have to be radically changed if the New Economy were not to become stagnant. The boom was indeed broken because private expenditure fell relative to income. The potentially dire effects on the level of activity were mitigated by a transformation in the fiscal policy stance, accompanied by a radical change in attitudes toward budget deficits, which suddenly became respectable. This analysis argues that a new strategic predicament is on the horizon as a result of the exceptionally large and growing balance of payments deficit.
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 InfoPaper provided by Levy Economics Institute in its series Economics Strategic Analysis Archive with number 03-3.
Date of creation: Mar 2003
Date of revision:
Contact details of provider:
Web page: http://www.levyinstitute.org
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Wynne Godley & Alex Izurieta, 2004. "L' economia statunitense: debolezze della Ã’forteÃ“ ripresa," Moneta e Credito, Economia civile, Economia civile, vol. 57(226), pages 151-160.
- D. Sornette & W. -X. Zhou, 2003. "Evidence of Fueling of the 2000 New Economy Bubble by Foreign Capital Inflow: Implications for the Future of the US Economy and its Stock Market," Papers cond-mat/0306496, arXiv.org.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marie-Celeste Edwards).
If references are entirely missing, you can add them using this form.