Perspectives on the U.S. Current Account Deficit and Sustainability

Bibliographic Data

ID14855718
AuthorsCatherine L Mann (0000-0001-7747-2506, Senior Fellow, Institute for International Economics, Washington, D.C., corresponding author)
Year2002
Volume16
Issue3
Pages131-152
Publication date2002-08-01
Open AccessYes
TypeARTICLE
VenueThe Journal of Economic Perspectives (JOURNAL)
Journal identifiersISSN: 0895-3309 • E-ISSN: 1944-7965
PublisherAmerican Economic Association (PUBLISHER • US)
DOI10.1257/089533002760278758
OpenAlexW2127066662
LanguageEN
Citations received9
References cited14

This essay considers the underpinnings of the large U.S. current account deficit. It then tackles the question of whether the U.S. current account deficit is sustainable. A current account deficit is “sustainable” at a point in time if neither it, nor the associated foreign capital inflows, nor the negative net international investment position are large enough to induce significant changes in economic variables, such as consumption or investment or interest rates or exchange rates. Even if the current account deficit is sustainable by this definition today, its trajectory could still be creating future risks for the U.S. and global economy

Current account · Deficit spending · Economics · Exchange rate · Foreign direct investment · Macroeconomics · Monetary economics · Political science · Politics · Sustainability · Economic Theory and Policy · Global Financial Crisis and Policies · Monetary Policy and Economic Impact · Finance

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Open DOISci-HubOpen Access