Eastern Economic Journal

, Volume 44, Issue 2, pp 323–328 | Cite as

How to Solve the Trade Problem: The Generalized Buffett Countertrade Plan*

  • David Colander
Colander's Economics with Attitude
  • 29 Downloads

Abstract

This article outlines a countertrade plan that would give countries another tool to control trade imbalances. It is a generalization of a plan put forward by Warren Buffett. It involves creating a new market in Countertrade Certificates in which exporters and importers would be required to offset the effect of their trade on the trade balance by buying an offsetting Countertrade Certificate. The price of these Certificates would depend on the degree of trade imbalance in their absence.

Keywords

Globalization Trade policy Export-led growth Trade imbalance 

References

  1. Buffett, Warren. 2003. America’s growing trade deficit is selling the nation out from under us. Here’s a way to fix the problem — and we need to do it now. Fortune Magazine.Google Scholar
  2. Buffett, Warren. 2016. Here’s how I would solve the trade problem. Fortune Magazine.Google Scholar
  3. Culbertson, J. M. 1984. International Trade and the Future of the West. Madison, WI: 21st Century.Google Scholar
  4. Lerner, Abba, and David Colander. 1980. MAP: A Market Anti-inflation Plan. San Diego: Harcourt Brace.Google Scholar

Copyright information

© EEA 2017

Authors and Affiliations

  • David Colander
    • 1
  1. 1.Middlebury CollegeMiddleburyUSA

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