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...
Main Author: | |
---|---|
Other Authors: | , |
Format: | eBook |
Language: | English |
Published: |
Paris
OECD Publishing
2005
|
Subjects: | |
Online Access: | |
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.. |
---|---|
Physical Description: | 42 p |