The problem is in fact not exports - exports since 1990
have grown faster than the other G-7 countries (though there was a dip in 2001-3
exports are now rising at about 13%). This growth will likely continue
though it depends on an acceleration of European and Japanese domestic
growth. If there is an economic crisis it is there rather than
the US and the imbalances of the US are now a problem for all not just the US -
which is why the adjustment process will have international support and 'should'
be manageable. The trade deficit problem stems from the
remarkable growth in imports not a capacity to export. This, however will only
be marginally attenuated by prices changes; it also needs an
accompanying shift in the relative growth of Europe and Japan so they not
only absorb more US goods, but also more Chinese goods (rather than the US
doing so much of this) and especially so they concentrate more of their
production to domestic production - easing their exports and leading to more
imports from the US. This will, as people say, take some time if it is to
happen. What financial markets will be looking for is not the end of the trade
deficit, but its peaking - ie that the slow correction has
begun.
From: PEN-L list [mailto:[EMAIL PROTECTED] On Behalf Of soula avramidis
Sent: March 23, 2005 12:52 AM
To: [email protected]
Subject: Re: [PEN-L] US exporters fail to reap benefits of a lower $
From: PEN-L list [mailto:[EMAIL PROTECTED] On Behalf Of soula avramidis
Sent: March 23, 2005 12:52 AM
To: [email protected]
Subject: Re: [PEN-L] US exporters fail to reap benefits of a lower $
What the article does not say is that after many years of import dependency
it takes time to revamp US prodcution structure towards the export market. old
habits die hard.
Eubulides <[EMAIL PROTECTED]> wrote:
http://news.ft.com/cms/s/6b2db674-9a53-11d9-a094-00000e2511c8.html
US exporters fail to reap benefits of lower dollar
By Christopher Swann in Washington
Published: March 21 2005 21:54 | Last updated: March 21 2005 21:54
__________________________________________________
Do You Yahoo!?
Tired
of spam? Yahoo! Mail has the best spam protection around
http://mail.yahoo.com
