1. Home
  2. Studies
  3. Development and Determinants of the US Current Account Deficit
Klaus Hafemann / Michael Hüther IW-Trends No. 1 25. March 2011 Development and Determinants of the US Current Account Deficit
Download PDF
Development and Determinants of the US Current Account Deficit
Klaus Hafemann / Michael Hüther IW-Trends No. 1 25. March 2011

Development and Determinants of the US Current Account Deficit

Download PDF

Share this article:

or copy the following link:

The link was added to your clipboard!

The US have been showing a current account deficit for some time. The reason is the enormously negative trade balance caused by net imports from many countries, including emerging markets in Asia, oil exporting countries and industrialized countries. By far the biggest net exporter of goods to the US is China, which experiences a massive and enduring economic boom fueled by strong investment and high export growth. In this context, some voices, mainly in the US, accuse the Chinese government of heavily boosting the country’s exports. There is some truth to these charges. However, the net capital import into the US which accompanies its current account deficit must be understood in the light of its long-lasting expansive monetary and fiscal policies. The net export of goods of a number of industrialized countries into the US is a result of structural differences and economic specialization.

Download | PDF

Download PDF
Development and Determinants of the US Current Account Deficit
Klaus Hafemann / Michael Hüther IW-Trends No. 1 25. March 2011

Development and Determinants of the US Current Account Deficit

Download PDF

Share this article:

or copy the following link:

The link was added to your clipboard!

More on the topic

Read the article
The Costs and Benefits of Continuing Further Training
Susanne Seyda / Beate Placke IW-Trends No. 4 4. December 2017

The 9th IW Survey of Further Training

In 2016 some 85 per cent of companies in Germany were active in continuing vocational training, using a broad mix of methods.

IW

Read the article
IW Research Group Macroeconomic Analysis and Forecast IW-Trends No. 4 27. November 2017

Has the German Economy Reached its Limit?: Skilled Labour Shortages as a Brake on Growth

The German economy is performing significantly better than was expected in the first few months of this year. During the course of 2017, certain early fears – especially of a weakening of the global economy due to increasing protectionism – have proved ...

IW

Content element with id 8880 Content element with id 9713