The Challenges of Narrowing the US Current-Account Deficit and Implications for Other Economies
This article uses the OECD's interlink model to explore several possible channels through which a narrowing of the US current account deficit could occur. The shocks considered include dollar depreciation, fiscal consolidation, and an improvement in the non-price competitiveness of US producers...
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| Other Authors: | , |
| Format: | eBook |
| Language: | English |
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Paris
OECD Publishing
2005
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| Collection: | OECD Books and Papers - Collection details see MPG.ReNa |
| Summary: | This article uses the OECD's interlink model to explore several possible channels through which a narrowing of the US current account deficit could occur. The shocks considered include dollar depreciation, fiscal consolidation, and an improvement in the non-price competitiveness of US producers. A key conclusion is that shocks would have to be very large in order to materially reduce the US external deficit, largely because of the offsetting impact of second-round effects. In addition.. |
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| Physical Description: | 42 p |