Number: 98-693
Title: THE U.S. TRADE DEFICIT: TRENDS, THEORY, POLICY, AND SUSTAINABILITY
Authors: Dick K. Nanto, Economics Division 
Abstract: This report surveys recent trends in the U.S. trade deficit and the economic theory and policies surrounding it. The Trade Deficit Review Commission was organized in June 1999 to develop trade policy recommendations. This report points out some problems with and recent advances in traditional economic approaches to trade theory and policy, particularly with respect to inter-industry trade, strategic trade, macroeconomic trade theory, the twin deficits, the exchange rate, and intertemporal savings and investment. It also examines the sustainability of the trade deficit and its relationship to employment.
Pages: 27
Date: Updated June 17, 1999