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The Dollar and the Trade Deficit in the 1980s: A Personal View

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  • Martin Feldstein

Abstract

The sharp gyrations of the dollar and of the trade deficit in the 1980s were among the most novel and least understood economic developments of the decade. This paper, which was written as part of the NBER project on American economic policy in the 1980s, examines the reasons for the dollar's swings and the nature of the policy debate about the appropriate government response to the rising and then falling dollar.

Suggested Citation

  • Martin Feldstein, 1993. "The Dollar and the Trade Deficit in the 1980s: A Personal View," NBER Working Papers 4325, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:4325
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    References listed on IDEAS

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    1. Feldstein, Martin & Horioka, Charles, 1980. "Domestic Saving and International Capital Flows," Economic Journal, Royal Economic Society, vol. 90(358), pages 314-329, June.
    2. Feldstein, Martin, 1986. "U.S. Budget Deficits and the European Economies: Resolving the Political Economy Puzzle," American Economic Review, American Economic Association, vol. 76(2), pages 342-346, May.
    3. Martin Feldstein, 1986. "New Evidence on the Effects of Exchange Rate Intervention," NBER Working Papers 2052, National Bureau of Economic Research, Inc.
    4. Martin Feldstein, 1992. "The Budget and Trade Deficits Aren't Really Twins," NBER Working Papers 3966, National Bureau of Economic Research, Inc.
    5. Martin Feldstein & Charles Horioka, 1979. "Domestic Savings and International Capital Flows, W.A. Mackintosh Lecture 1979," Working Paper 331, Economics Department, Queen's University.
    6. Feldstein, Martin, 1989. "The Case against Trying to Stabilize the Dollar," American Economic Review, American Economic Association, vol. 79(2), pages 36-40, May.
    7. Feldstein, Martin, 1988. "Rethinking International Economic Coordination," Oxford Economic Papers, Oxford University Press, vol. 40(2), pages 205-219, June.
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    Cited by:

    1. Rishabh Aggarwal & Adrien Auclert & Matthew Rognlie & Ludwig Straub, 2023. "Excess Savings and Twin Deficits: The Transmission of Fiscal Stimulus in Open Economies," NBER Macroeconomics Annual, University of Chicago Press, vol. 37(1), pages 325-412.
    2. Antonia Lòpez-Villavicencio & Luis Antonio Reyes Ortiz, 2018. "Is globalisation taking away jobs? An empirical assessment for advanced economies," CEPN Working Papers halshs-01895223, HAL.
    3. Clarida, Richard & Gali, Jordi, 1994. "Sources of real exchange-rate fluctuations: How important are nominal shocks?," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 41(1), pages 1-56, December.
    4. J Bradford DeLong, 2000. "What Went Right in the 1990s? Sources of American and Prospects for World Economic Growth," RBA Annual Conference Volume (Discontinued), in: David Gruen & Sona Shrestha (ed.),The Australian Economy in the 1990s, Reserve Bank of Australia.
    5. Antonia Lòpez-Villavicencio & Luis Antonio Reyes Ortiz, 2018. "Is globalisation taking away jobs? An empirical assessment for advanced economies," Working Papers halshs-01895223, HAL.

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    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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