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Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884 Exercise 24
Use the following information to work Problem.
Global Saving Glut and U.S. Current Account, remarks by Ben Bernanke (when a governor of the Federal Reserve) on March 10, 2005: The U.S. economy appears to be performing well, but one aspect of U.S. economic performance still evokes concern: the nation's large and growing current account deficit (negative net exports). Most forecasters expect the current account imbalance to decline slowly, implying a continued need for foreign credit and a concomitant decline in the U.S. net foreign asset position.
Why is the United States, with the world's largest economy, borrowing heavily on international capital markets-rather than lending, as would seem more natural?
Global Saving Glut and U.S. Current Account, remarks by Ben Bernanke (when a governor of the Federal Reserve) on March 10, 2005: The U.S. economy appears to be performing well, but one aspect of U.S. economic performance still evokes concern: the nation's large and growing current account deficit (negative net exports). Most forecasters expect the current account imbalance to decline slowly, implying a continued need for foreign credit and a concomitant decline in the U.S. net foreign asset position.
Why is the United States, with the world's largest economy, borrowing heavily on international capital markets-rather than lending, as would seem more natural?
Explanation
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In the global market of loanable funds, ...
Macroeconomics 11th Edition by Michael Parkin
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