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Might the United States continue to run large current account deficits?

  • David Gruen

    (Treasury, Government of Australia)

  • Jason Harris

    (Treasury, Government of Australia)

It is often argued that the United States cannot continue for long to run current account deficits of their current size of 5 per cent of Gross Domestic Product (GDP). This article questions this conventional wisdom by examining the implications were the United States to continue to run current account deficits of 5 per cent of GDP for the next ten years.

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File URL: http://archive.treasury.gov.au/documents/876/PDF/US_current_account_deficits.pdf
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Article provided by The Treasury, Australian Government in its journal Economic Roundup.

Volume (Year): (2004)
Issue (Month): 2 (August)
Pages: 45-54

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Handle: RePEc:tsy:journl:journl_tsy_er_2004_2_3
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  1. Lane, Philip R. & Milesi-Ferretti, Gian Maria, 2001. "Long-Term Capital Movements," CEPR Discussion Papers 2873, C.E.P.R. Discussion Papers.
    • Philip R. Lane & Gian Maria Milesi-Ferretti, 2002. "Long-Term Capital Movements," NBER Chapters, in: NBER Macroeconomics Annual 2001, Volume 16, pages 73-136 National Bureau of Economic Research, Inc.
  2. Australian Treasury, 2001. "The net income deficit over the past two decades," Economic Roundup, The Treasury, Australian Government, issue 1, pages 105-135, May.
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