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Might the United States continue to run large current account deficits?

Author

Listed:
  • David Gruen

    (Treasury, Government of Australia)

  • Jason Harris

    (Treasury, Government of Australia)

Abstract

It is often argued that the United States cannot continue for long to run current account deficits of their current size of 5 per cent of Gross Domestic Product (GDP). This article questions this conventional wisdom by examining the implications were the United States to continue to run current account deficits of 5 per cent of GDP for the next ten years.

Suggested Citation

  • David Gruen & Jason Harris, 2004. "Might the United States continue to run large current account deficits?," Economic Roundup, The Treasury, Australian Government, issue 2, pages 45-54, August.
    • Handle: RePEc:tsy:journl:journl_tsy_er_2004_2_3
    as

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    File URL: http://archive.treasury.gov.au/documents/876/PDF/US_current_account_deficits.pdf
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    References listed on IDEAS

    as
    1. Philip R. Lane & Gian Maria Milesi-Ferretti, 2002. "Long-Term Capital Movements," NBER Chapters, in: NBER Macroeconomics Annual 2001, Volume 16, pages 73-136, National Bureau of Economic Research, Inc.
    2. Mr. Martin Mühleisen & Mr. Christopher M Towe, 2004. "U.S. Fiscal Policies and Priorities for Long-Run Sustainability," IMF Occasional Papers 2004/001, International Monetary Fund.
    3. Australian Treasury, 2001. "The net income deficit over the past two decades," Economic Roundup, The Treasury, Australian Government, issue 1, pages 105-135, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    current account; macroeconomic policy; public debt; sovereign debt; sustainability; United States;
    All these keywords.

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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