IMF Policy Discussion Papers

The United States: Japan Current Account Imbalance: A Review

By Stephen S. Golub

March 1, 1994

Preview Citation

Format: Chicago

Stephen S. Golub The United States: Japan Current Account Imbalance: A Review, (USA: International Monetary Fund, 1994) accessed December 22, 2024

Summary

This paper reviews the macroeconomic and microeconomic dimensions of the United States-Japan conflict over trade. From a macroeconomic perspective, there is nothing surprising about Japan’s surpluses, given global trends in saving and investment. The current accounts of the United States and Japan have both responded to exchange rate changes in a normal fashion with about a two-year lag. Although not the source of the Japanese current-account surplus, a key issue in the debate is the nature of Japanese trade policy and its possible effects on trade patterns. Empirical studies attempting to determine whether Japan’s trade prices and quantities are abnormal have arrived at conflicting conclusions. This is a Paper on Policy Analysis and Assessment and the author(s) would welcome any comments on the present text. Citations should refer to a Paper on Policy Analysis and Assessment of the International Monetary Fund, mentioning the authors) and the date of issuance. The views expressed are those of the author(s) and do not necessarily represent those of the Fund.

Subject: Balance of payments, Current account, Current account deficits, Foreign exchange, Imports, International trade, Real exchange rates, Trade balance

Keywords: Commodity composition, Current account, Current account deficits, Deficit, Europe, Goods imports, Import, Import behavior, Import pattern, Import share, Imports, Japan, PDP, Real exchange rates, Trade balance, United States current-account deficit, Volume growth, Western Europe

Publication Details

  • Pages:

    32

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Policy Discussion Paper No. 1994/008

  • Stock No:

    PPIEA0081994

  • ISBN:

    9781451970708

  • ISSN:

    1564-5193

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