The U.S. Trade Deficit as an American Problem
Over the last several years, the U.S. has been accusing China of manipulating its currency to keep it undervalued against the U.S. dollar. As a result, the prosecutor claims that the U.S. has been running a persistent trade deficit with China caused entirely by currency under-valuation. We argue that the U.S. trade deficit is an American problem caused by excessive spending, extremely high indebtedness, inadequate saving and the abandonment of manufacturing industries. It demonstrated that the alleged under-valuation of the yuan is not the cause of the U.S. trade deficit with China because real life complications prevent the materialization of the effect of exchange rate on trade balance.
Volume (Year): 5 (2013)
Issue (Month): 1 (March)
|Contact details of provider:|| Postal: |
When requesting a correction, please mention this item's handle: RePEc:oul:tncr09:v:5:y:2013:i:1:p:12-27. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Denny Liao)The email address of this maintainer does not seem to be valid anymore. Please ask Denny Liao to update the entry or send us the correct address or (Jen Ma)
If references are entirely missing, you can add them using this form.