GLOBE International Finance Theory & Policy
by Steven M. Suranovic Chapter 6
The Whole Truth about Trade Imbalances


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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

DOWNLOAD Chapter 6 in PDF format.

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

LEVEL 1

LEVEL 2

Problem Set 6 2-1 Problem Set 6 2-2 Problem Set 6 2-3

LEVEL 3


Answer Keys

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Related Links
  • 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.


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©1997-2006 Steven M. Suranovic, ALL RIGHTS RESERVED
Last Updated on 12/2/05
HOW TO CITE THIS PAGE
Suranovic, Steven, "International Finance Theory and Policy: The Whole Truth about Trade Imbalances," The International Economics Study Center, © 1997-2006, http://internationalecon.com/v1.0/Finance/ch6/ch6.html.