Advertisement

U.S. Trade Deficit: Causes, Consequences, and Cures

Proceedings of the Twelth Annual Economic Policy Conference of the Federal Reserve Bank of St. Louis

  • Albert E. Burger

Table of contents

  1. Front Matter
    Pages i-xv
  2. Session I

    1. Front Matter
      Pages 1-1
    2. Peter Hooper, Catherine L. Mann
      Pages 3-105
    3. Rudiger W. Dornbusch
      Pages 107-111
    4. Alan Reynolds
      Pages 113-123
    5. Michael R. Darby
      Pages 125-127
  3. Session II

    1. Front Matter
      Pages 129-129
    2. Ray C. Fair
      Pages 187-191
    3. Richard D. Haas
      Pages 231-235
  4. Session III

    1. Front Matter
      Pages 237-237
    2. Barry J. Eichengreen
      Pages 239-278
    3. Anna J. Schwartz
      Pages 279-285
    4. William Poole
      Pages 309-315

About this book

Introduction

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.

Keywords

Bank econometrics economic policy growth macroeconomics

Editors and affiliations

  • Albert E. Burger
    • 1
  1. 1.The Federal Reserve Bank of St. LouisUSA

Bibliographic information

  • DOI https://doi.org/10.1007/978-94-009-2520-5
  • Copyright Information Springer Science+Business Media B.V. 1989
  • Publisher Name Springer, Dordrecht
  • eBook Packages Springer Book Archive
  • Print ISBN 978-94-010-7638-8
  • Online ISBN 978-94-009-2520-5
  • Buy this book on publisher's site
Industry Sectors
Finance, Business & Banking