The United States and Her Creditors: Can the Symbiosis Last?
AbstractThe main arguments in this paper can be simply stated: 1) If output in the US grows fast enough to keep unemployment constant between now and 2010 and if there is no further depreciation in the dollar, the deficit in the balance of trade is likely to get worse, perhaps reaching 7.5 per cent by the end of the decade. 2) If the trade deficit does not improve, let alone if it gets worse, there will be a large further deterioration in the US's net foreign asset position so that, with interest rates rising, net income payments from abroad will at last turn negative and the deficit in the current account as a whole could reach at least 8.5 per cent of GDP. . . .
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Bibliographic InfoPaper provided by Levy Economics Institute in its series Economics Strategic Analysis Archive with number sa_sep_05.
Date of creation: Sep 2005
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-11-12 (All new papers)
- NEP-BEC-2005-11-12 (Business Economics)
- NEP-CNA-2005-11-12 (China)
- NEP-PKE-2005-11-12 (Post Keynesian Economics)
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