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  3. Journal of Economic Perspectives
  4. Fall 1989
  5. Implications of the U.S. Current Account Deficit

Journal of Economic Perspectives

ISSN 0895-3309 (Print) | ISSN 1944-7965 (Online)

Implications of the U.S. Current Account Deficit

  • David H. Howard
Journal of Economic Perspectives
vol. 3, no. 4, Fall 1989
(pp. 153–165)
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Abstract

In 1988, the United States recorded a deficit of about $135 billion on the current account of its balance of payments with the rest of the world. This paper presents an analytical framework for thinking about the current account deficit, explores causes of the current account deficit, and discusses the United States as a debtor nation and the issue of sustainability.

Citation

Howard, David H. 1989. "Implications of the U.S. Current Account Deficit." Journal of Economic Perspectives 3 (4): 153–165. DOI: 10.1257/jep.3.4.153

JEL Classification

  • E23 Macroeconomics: Production
  • F32 Current Account Adjustment; Short-term Capital Movements
  • F34 International Lending and Debt Problems