The United States and Global Capital Shortages: The Problem and Possible Solutions / Edition 1

by Sara Gordon

Overview

Gordon maintains that the United States must implement policy measures to reduce the large amounts of capital it is borrowing from the rest of the world—a problem she attributes, mainly, to low private savings rates and high federal budget deficits. She explains how the United States became a debtor nation, describes the changes in global capital markets that occurred in the 1980s, and analyzes the extent of global capital requirements, the drop in the U.S. savings rate, and the policy measures that could be taken to raise it. Unlike most discussions that focus on faulty international trade practices as a cause of U.S. deficits, Gordon places a large share of the responsibility on U.S. macroeconomic policies. Concise, readable, lucid, Gordon's book will be useful to professionals in banking and finance, and to academics and upper-level students of international business, finance, and economics.

Product Details

ISBN-13:	9780899307725
Publisher:	Bloomsbury Academic
Publication date:	08/18/1995
Edition description:	New Edition
Pages:	240
Product dimensions:	6.14(w) x 9.21(h) x 0.56(d)
Lexile:	1580L (what's this?)

About the Author

SARA L. GORDON is Associate Professor of Economics and Finance at St. John's University, New York. She has held positions at the International Monetary Fund and the U.S. Treasury Department, and has published widely in international economics jourbanals. Gordon is coauthor (with Francis A. Lees) of Foreign Multinational Investment in the United States: Struggle for Industrial Supremacy (Quorum, 1986).

Table of Contents

U.S. Capital Flows
Changes in Global Capital Markets During the 1980s
Foreign Direct Investment in the United States
The Saving Deficiency in the United States
Policies Designed to Raise the U.S. Saving Rate
Capital Flows and Balance-of-Payments Adjustment
Global Capital Requirements
Summary and Conclusion
Bibliography
Index

Editorial Reviews

The US is the largest net importer of capital, contributing to a shortage of global capital. Such a shortage foreshadows severe economic consequences including high real interest rates, stagnant investment and growth, and reduced standards of living. This study addresses the problem of large capital inflows into the US during the 1980s and 1990s, explains the relationship between the low level of national savings and current account deficits, and examines solutions. Annotation c. Book News, Inc., Portland, OR (booknews.com)

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