Global Current Account Balances Widen, Reversing Narrowing Trend
Throughout history, it has been important to understand the threats arising from globalization (disease, conquest, war, financial crises, and others) and to face them head on, not by ending the benefits of globalization, but by using the means of international cooperation to control the negative consequences of global-scale interconnectedness.
Jeffrey D. Sachs • The Ages of Globalization: Geography, Technology, and Institutions
While the US runs persistent current account deficits, Japan runs persistent current account surpluses, which is how these substantially different NIIPs were built.
This will be interesting for the United States over the next decade. Unlike Japan, which funds its own fiscal deficits domestically, the United States has historically been partially rel
... See moreLyn Alden • Economic Japanification: Not What You Think
In magnitudes that Argentines could only dream of, the U.S. government has been spending more than it raises in taxes, and American consumers and businesses have been importing more goods than they have been exporting, with borrowing from foreigners covering much of the gaps. The record budget deficit of about $413 billion for 2004, and the record
... See morePaul Blustein • And the Money Kept Rolling in (And Out): Wall Street, the Imf, And the Bankrupting of Argentina: Wall Street, the IMF and the Bankrupting of Argentina
Globalization Isn’t Dead. But It’s Changing.
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