WHY A LARGE US DEFICIT IS LIKELY TO PERSIST

This article reviews some arguments why the US deficit, far from being unsustainable, is likely to last for a decade or longer. They rest on globalization of world financial markets combined with significant demographic change in Europe and East Asia, the locus (along with oil-exporting countries) o...

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Bibliographic Details
Published inCESifo forum Vol. 8; no. 4; p. 6
Main Author Cooper, Richard N
Format Journal Article
LanguageEnglish
Published München Institut für Wirtschaftsforschung (Ifo) 01.12.2007
Subjects
Budget deficits
Current accounts
Federal budget
Globalization
Securities markets
Studies
United States > US
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Summary:This article reviews some arguments why the US deficit, far from being unsustainable, is likely to last for a decade or longer. They rest on globalization of world financial markets combined with significant demographic change in Europe and East Asia, the locus (along with oil-exporting countries) of the large current account surpluses of the world.
ISSN:1615-245X
2190-717X