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Can the Growth in the U.S. Current Account Deficit Be Sustained?: The Growing Burden of Servicing Foreign-Owned U.S. Debt

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  • Dimitri B. Papadimitriou
  • Edward Chilcote
  • Gennaro Zezza

Abstract

Can the growth in the U.S. current account deficit be sustained? How does the flow of deficits feed the stock of debt? And how will the burden of servicing this debt affect future deficits and economic growth? These are some of the questions we address in this Strategic Analysis....

Suggested Citation

  • Dimitri B. Papadimitriou & Edward Chilcote & Gennaro Zezza, 2006. "Can the Growth in the U.S. Current Account Deficit Be Sustained?: The Growing Burden of Servicing Foreign-Owned U.S. Debt," Economics Strategic Analysis Archive sa_may_06, Levy Economics Institute.
    • Handle: RePEc:lev:levysa:sa_may_06
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    1. Wynne Godley, "undated". " A Critical Imbalance in U.S. Trade, The U.S. Balance of Payments, International Indebtedness, and Economic Policy, No. 23, 1995," Economics Public Policy Brief Archive ppb_23, Levy Economics Institute.
    2. Terry McKinley, 2006. "The monopoly of global capital flows: Who needs structural adjustment now?," Working Papers 12, International Policy Centre for Inclusive Growth.
    3. Wynne Godley & Dimitri B. Papadimitriou & Claudio H. Dos Santos & Gennaro Zezza, 2005. "The United States and Her Creditors: Can the Symbiosis Last?," Economics Strategic Analysis Archive sa_sep_05, Levy Economics Institute.
    4. William R. Cline, 2005. "United States as a Debtor Nation, The," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 3993, January.
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    Cited by:

    1. Rudiger von Arnim, 2007. "WP 2007-7 Short-Run Adjustment in a Global Model of Current Account Imbalances," SCEPA working paper series. 2007-7, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    2. von Arnim, Rudiger, 2009. "Recession and rebalancing: How the housing and credit crises will impact US real activity," Journal of Policy Modeling, Elsevier, vol. 31(3), pages 309-324, May.

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