The United States as a Debtor Nation

by William Cline

Overview

The United States has once again entered into a period of large external imbalances. This time the current account deficit, at nearly 6 percent of GDP in 2004, is much larger than in the last episode, when the deficit peaked at about 3.5 percent of GDP in 1987. Moreover, the deficit is on track to become substantially larger over the next several years. This study examines whether the large and growing current account deficit is a problem, and if so, how the problem can be solved. A central policy conclusion of this study is that it is increasingly important that the United States reduce its external current account deficit. This deficit is no longer benign as it arguably was in the late 1990s when it was financing high investment instead of high consumption and large government dissaving.

Product Details

ISBN-13:	9780881323993
Publisher:	Peterson Institute for International Economics
Publication date:	09/30/2005
Edition description:	New Edition
Pages:	323
Product dimensions:	6.00(w) x 9.00(h) x (d)
Age Range:	18 Years

About the Author

William R. Cline has been a senior fellow at the Peterson Institute for International Economics since 1981. Durgaing 1996–2001 while on leave from the Institute, Dr. Cline was deputy managing director and chief economist of the Institute of International Finance (IIF) in Washington, DC. From 2002 through 2011 he held a joint appointment with the Peterson Institute and the Center for Global Development, where he is currently senior fellow emeritus. Before joining the Peterson Institute, he was senior fellow, the Brookings Institution (1973–81); deputy director of development and trade research, office of the assistant secretary for international affairs, US Treasury Department (1971–73); Ford Foundation visiting professor in Brazil (1970–71); and lecturer and assistant professor of economics at Princeton University (1967–70).

Editorial Reviews

[A]n extremely useful resource, not only for people seeking to learn about the US trade deficit and related external borrowing, but also for people who are familiar with these important issues and need an accessible reference.

Kristin Forbes

The most thorough and up-to-date look at the issue... It is to be hoped that someone with influence in Washington is paying attention.

The National Journal - Clive Crook

A splendid book that synthesizes all the core issues... It is an unusually thorough and thoughtful piece of policy analysis, and it will enjoy wide circulation and will become even more relevant as the problems it predicts emerge.

Kenneth Rogoff