Open-Economy Macroeconomics

Paper Summary:

This paper explains that in the U. S., the demand for petroleum is growing, the supply is diminishing and foreign trade erases other positive effects in growth of investment, inventories and private consumption. The author points out that Japan's economy has been adversely affected by the corruption in the "Bank of Japan" combined with the low confidence of consumers and reports coming from China are under suspicion of being incorrect due to inconsistencies and discrepancies. The paper concludes that the incredible imbalance in the export and import trade between the United States and China is an economic issue that must be addressed. Chart.

Table of Contents
Statement of Thesis
Introduction
The United States
Japan
China
Imbalance in Trade
China Solutions
Japan Solutions
U.S. Solutions
Summary and Conclusion

From the Paper:

"Imports were reported as having risen 3.3 percent with 50 percent increase accredited to petroleum products and the other 50 percent from capital goods and industrial supplies. The U.S. trade gap in June was much worse than the assumption of the Commerce Department. Foreign trade erases other positive effects in growth of investment, inventories and private consumption. Widening trends are expected in the trade deficit and a sharp fall in the value of the U.S. dollar. Further reported were aircraft imports and exports both being extremely and unusually high. The fall in exports overall is a bad indication."

More papers on Open-Economy Macroeconomics:

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• Research Paper # 110406 : "Macroeconomic Impact"
• Analytical Essay # 104776 : "Analysis of Monetary Policy"

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