Policies for Reducing the Current-account Deficit
Author :
Publisher :
Page : 100 pages
File Size : 45,44 MB
Release : 1989
Category : Balance of payments
ISBN :
Author :
Publisher :
Page : 100 pages
File Size : 45,44 MB
Release : 1989
Category : Balance of payments
ISBN :
Author :
Publisher :
Page : 86 pages
File Size : 34,99 MB
Release : 1989
Category :
ISBN :
With the sharp increase in the U.S. current-account deficit during the 1980s, the relative effectiveness of alternative policies to reduce that deficit has come to the fore in public policy discussions. Policymakers and analysts are discussing actively whether to go about reducing the deficit through trade policy measures, closer international coordination of monetary and fiscal policies, or some combination of these measures. This paper and an accompanying Congressional Budget Office study add quantitative estimates to this discussion by reporting simulations of several alternative policy measures using an international econometric model. The purpose of this paper is to provide technical background on the model and its properties. The main policy simulations and their interpretation are described in the other study.
Author : Albert E. Burger
Publisher : Springer Science & Business Media
Page : 318 pages
File Size : 48,87 MB
Release : 2012-12-06
Category : Business & Economics
ISBN : 9400925204
On October 23 and 24, 1987, the Federal Reserve Bank of St. Louis hosted its twelfth annual economic policy conference, "The U.S. Trade Deficit: Causes, Consequences, and Cures." This book contains the papers and comments delivered at that conference. A sharp decline in the value of the dollar against major foreign cur rencies began in March 1985 and continued through December 1987. Despite this decline, the U.S. trade deficit experienced considerable growth during this time. Many consider the simultaneous occurrence of these two events over so long a period to be a problem requiring a policy response. The conference addresses this issue. Various papers discuss the cause of the trade deficit, the reason for its size and persistence, its relation ship with other macroeconomic variables, its impact on other industrialized countries, and various policy proposals aimed at reducing the deficit. Session I Peter Hooper and Catherine L. Mann provide an analytical setting for the conference with their "The U.S. External Deficit: Its Causes and Persistence." Their observation that the unprecedentedly large U. S. trade imbalance is striking in both its size and its persistence could well be the subtitle of each of the papers presented. The macroeconomic studies, which Hooper and Mann summarize in their review of the existing literature, uniformly conclude that the deficit has not responded to fundamental macroeconomic determinants-relative U.S. income growth and the dollar's exchange rate-in the way that earlier, smaller U.S.
Author : United States. Congressional Budget Office
Publisher :
Page : 0 pages
File Size : 38,37 MB
Release : 1989
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ISBN :
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Page : pages
File Size : 23,88 MB
Release : 1989
Category :
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Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 32 pages
File Size : 48,5 MB
Release : 2010-05-01
Category : Business & Economics
ISBN : 1455200808
This paper examines the relationship between fiscal policy and the current account, drawing on a larger country sample than in previous studies and using panel regressions, vector autoregressions, and an analysis of large fiscal and external adjustments. On average, a strengthening in the fiscal balance by 1 percentage point of GDP is associated with a current account improvement of 0.2–0.3 percentage point of GDP. This association is as strong in emerging and low-income countries as it is in advanced economies; and significantly higher when output is above potential.
Author : Catherine L. Mann
Publisher : Peterson Institute
Page : 226 pages
File Size : 31,16 MB
Release : 1999
Category : Business & Economics
ISBN : 9780881322644
The global financial crisis of 1997-98 and the widening US trade deficit have precipitated fresh inquiry into a set of perennial questions about global integration and the US economy. How has global integration affected US producers and workers, and overall growth and inflation? Is a chronic and widening deficit sustainable, or will the dollar crash, perhaps taking the economy with it? If the problem was one of "twin deficits," as many thought, why has the trade deficit continued to grow even as the budget deficit narrowed to zero? If US companies are so competitive, why does the trade deficit persist? Is the trade deficit a result of protectionism abroad? Will it lead to protectionism at home? What role do international capital markets have? Each chapter presents relevant data and a simple analytical framework as the basis for concise discussions of these major issues. The final section of the book provides an outlook for the deficit and suggests alternative policy courses for dealing with it. This book is designed for policymakers and others who are interested in the US role in the world economy. It is also suitable for courses in international economics, business, and international affairs.
Author : John Pitchford
Publisher :
Page : 56 pages
File Size : 41,25 MB
Release : 1992
Category : Budget deficits
ISBN :
Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 33 pages
File Size : 16,73 MB
Release : 1989-01-01
Category : Business & Economics
ISBN : 1451931239
In pursuing a steady-state reserve target, policymakers in small open economies can resort to devaluation or to temporary increases in public saving. This paper contrasts the dynamic implications of these alternative policies in a model with optimizing agents who possess perfect foresight. In general, the private sector cannot be insulated from the effects of the government’s reserve-accumulation policies. The dynamic effects of devaluation depend on the fiscal policy rule in effect. In contrast to devaluation, the “equivalent” fiscal policies imply discontinuities in private consumption and temporary tax increases may cause key macroeconomic variables to overshoot their steady-state values.
Author : Mr.Michael Kumhof
Publisher : International Monetary Fund
Page : 37 pages
File Size : 40,95 MB
Release : 2009-10-01
Category : Business & Economics
ISBN : 1451873840
The effectiveness of recent fiscal stimulus packages significantly depends on the assumption of non-Ricardian savings behavior. We show that, under the same assumption, fiscal deficits can have worrisome implications if they turn out to be permanent. First, if they occur in large countries they significantly raise the world real interest rate. Second, they cause a short run current account deterioration equal to around 50 percent of the fiscal deficit deterioration. Third, the longer run current account deterioration equals almost 75 percent for a large economy such as the United States, and almost 100 percent for a small open economy.