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Should We Worry about Trade Imbalances?

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Abstract

Trade imbalances are a perennial concern for policymakers and the public. But what does it mean for a country to have a trade surplus or deficit? The United States has run persistent trade deficits since the late 1970s, while Germany has had trade surpluses since the 1990s. Is either position inherently good or bad? The answer to this fundamental question of economic policy is a resounding "no" ? up to a point.

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  • Thomas A. Lubik & Timothy Sablik, 2017. "Should We Worry about Trade Imbalances?," Richmond Fed Economic Brief, Federal Reserve Bank of Richmond, issue October.
    • Handle: RePEc:fip:fedreb:00057
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    File URL: https://www.richmondfed.org/-/media/richmondfedorg/publications/research/economic_brief/2017/pdf/eb_17-10.pdf
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    Cited by:

    1. Carlos A. Silva & Xavier Ordeñana & Paul Vera-Gilces & Alfredo Jiménez, 2021. "Global Imbalances: The Role of Institutions, Financial Development and FDI in the Context of Financial Crises," Sustainability, MDPI, vol. 13(1), pages 1-20, January.

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    Keywords

    Trade; trade imbalances;

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