International Finance Theory and Policy
by Steven M. Suranovic

The Whole Truth about Trade Imbalances

Table of Contents

6-0 An Overview
6-1 The National Welfare Effects of Trade Imbalances
6-2 Some Further Complications
6-3 Are Trade Imbalances Good or Bad?: Summary Results
6-4 How to Evaluate Trade Imbalances


Problem Sets

LEVEL 1: Basic Definitional
LEVEL 2: Basic Intermediate
LEVEL 3: Advanced Intermediate


Problem Set F6 2-1
Problem Set F6 2-2
Problem Set F6 2-3
Problem Set F6 2-4


Answer Keys

Download Answer Keys

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Related Links  

A Multi-Country Evaluation of Trade Imbalances
collection of articles by GW-Elliott School MA students which evaluates the trade imbalance experience of a series of countries.

America's Maligned and Misunderstood Trade Deficit
an article by Daniel Griswold at the Cato Institute offers some reasons why the US trade deficit is not a cause for great concern. Note especially the graph showing the relationship between the US trade deficit and the unemployment rate.

Current Account Sustainability in Transition Economies
an article by Nouriel Roubini and Paul Wachtel covers many of the issues that need to be addressed in the analysis of individual country's trade imbalances. It also has some relevant data for some transition economies.