Jason Welker's Library tagged "Balance of payments" → View Popular, Search in Google

Nov

2010

Robert J. Samuelson - As G-20 summit nears, China is unlikely to budge on currency

Are the global imbalances in trade all China's fault?

www.washingtonpost.com/...AR2010110703841.html

- Preview

China trade trade deficit balance of payments current account protectionism

Before the financial crisis, some advanced countries (led by the United States) were overspending, and some poorer countries (led by China) were oversaving. The two offset each other. The big spenders ran large trade deficits, and the big savers ran large trade surpluses.
In practice, it may boil down to this: Will China change?
7 more annotation(s)...
- In 2007, China's current account surplus (mainly trade) reached 11 percent of its economy (gross domestic product). But as China has moved up the value chain - from toys to telecommunications equipment - and as the world economy weakened, its surpluses have become more threatening to more countries.
- China embraced an investment-led and export-led economic model, explains economist Eswar Prasad of Cornell University. Manufacturers receive subsidized land and energy; the exchange rate of the renminbi is controlled and kept depressed, making Chinese exports more competitive on world markets and making imports into China more expensive.
- It's not just Americans who resent the unfair export advantage of an undervalued currency; Europeans, Japanese, Mexicans and others are also unhappy.
- Savings normally go toward new factories, machinery and offices. But China's domestic needs for these aren't large enough to absorb all that saving.
- That's why it needs more consumer spending, lest it export more to compensate for lack of domestic demand
- The Chinese know this. They even embrace the goal of stimulating consumer spending and are trying to do so. But until they succeed, they won't relinquish the crutch of an undervalued exchange rate.
- The United States has let the dollar depreciate to cut its trade deficit. Because the renminbi is pegged to the dollar, the depreciation actually improves China's export competitiveness against some countries. All this looks less like rebalancing than a dogfight - among China, the United States and others - for competitive advantage.

Nov

2009

Japan Sees Improved Trade Data in October - WSJ.com

Even as its currency hits a 10 year high against the dollar, Japan's current account surplus still grows! Why would spending imports fall even the Yen strengthens? Wouldn't a stronger yen lead to more spending on imports among Japanese households? How does the elasticity of demand for imports and exports affect the current account balance following a strengthening of the country's currency?

online.wsj.com/...SB125910929664263229.html

- Preview

balance of payments current account exchange rates marshall lerner condition

TOKYO -- Japan's merchandise trade balance logged its largest surplus in 19 months in October, as stronger Asian demand for steel, semiconductors and electronic components led a continued recovery in exports, the Ministry of Finance said Wednesday.
Demand for Japanese goods, especially cars and electronics, also continued to pick up in Europe and the U.S., the Ministry of Finance said.

Continued weakness in Japanese imports, however, highlights concerns about the domestic economy. Imports were down 35.6% from a year earlier at 4.502 trillion yen.
1 more annotation(s)...
- The Bank of Japan faces mounting pressure to loosen its policy as deflation tightens its grip on the nation's economy. The central bank last week kept rates unchanged and upgraded its assessment of the economy. The bank, which has stuck with super-easy monetary policy for more than a decade, has hoped to follow other central banks in looking at ways to tighten policy.

Oct

2009

BEA : U.S. International Transactions Accounts Data

This website contains Balance of Payments data for the United States over 2008 and 2009.

www.bea.gov/...simple.cfm

- Preview

balance of payments current account capital account

May

2008

Trade Deficit Narrows in March, but Exports Fall - New York Times

Weak dollar, rising unemployment and falling incomes in the states lead to weak demand for imports from abroad, shifting the US balance of trade away from deficit towards surplus. Here's the Balance of Payment in action!

www.nytimes.com/...10econ.html

- Preview

Balance of payments trade deficit economics