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Oil prices and the U.S. trade deficit
- Source :
-
Journal of Policy Modeling . Sep/Oct2007, Vol. 29 Issue 5, p729-738. 10p. - Publication Year :
- 2007
-
Abstract
- Abstract: In the new millennium two developments have dominated the international economic situation: the persistence of high oil price and, consequently, the worsening of the U.S. trade deficit. In this paper I argue that it is possible to set forth an alternative explanation of U.S. trade deficit mainly considering a possible microeconomics missing link, taking in account the “twin nature” of the U.S. trade deficit and conjecturing that U.S. trade deficit can be explained as the result of a convergence of the Chinese and U.S. long run interest, in order to obtain a less energy intensive long run growth. So, I set forth the idea that the U.S., as the future exporter of the New Clean Technology, is a very attractive feature for China and this is a possible answer to the question: “Why should China continue to accumulate dollar reserves?” [Copyright &y& Elsevier]
Details
- Language :
- English
- ISSN :
- 01618938
- Volume :
- 29
- Issue :
- 5
- Database :
- Academic Search Index
- Journal :
- Journal of Policy Modeling
- Publication Type :
- Academic Journal
- Accession number :
- 26835560
- Full Text :
- https://doi.org/10.1016/j.jpolmod.2007.06.009