Trade Deficit
Essays

China announced on Oct. 28, 2004 the first interest rate rise in nine years. In this manner, Beijing is showing its willingness to adopt additional market-oriented reforms in order to have a tighter macro-economic…

Taino Indians used to inhabit the island, which was named by Christopher Columbus Hispaniola for at least 5,000 years prior to his discovery of America for the Europeans. The inhabitants of Taino were very gentle,…

¶ … macroeconomics, the U.S. Dollar appears to be the currency holding the greatest global power. Indeed, it is the dominant reserve currency (Liu), now comprising 68% of global reserves, while just a decade ago the…

How many times a day do individual peoples living in the UK hear that the country is a super power with a strong and growing economy? If you are like most people more times than you care to, especially given the…

What jobs ARE coming back? We know or we hear some jobs aren't coming back, but what about other jobs?

Housing activity was strong for a second successive year in 2003. Following a rise of 7% in 2002, actual expenditures on construction of residential houses spurted more than 10% in 2003.

¶ … economic history has shown that the U.S. dollar has fallen from its previously held top position in the world market. This fall has affected all other existing currencies, and particularly the Euro.

¶ … trade relationship that exists between the world's two largest economies has faced trouble and frustration in the past decade. Japan and the United States have had a strong relationship since they became economic…

Demand failures are a major economic problem, and one that cannot necessarily be addressed by cutting interest rates as once believed. Small economies, such as those known as the Asian "tigers" are not invulnerable to international speculation. They may, in fact, resist cutting their interest rates—raising them instead in an effort to keep their currencies from collapse. Failed economies financed poor investments with huge debt, and when the markets turned on their currencies—causing them to plummet—the foreign debt value grew astronomically causing an enormous number of companies to fail. The International Money Fund quickly identified the source of the crises as deeply structural and requiring fundamental financial reforms. Some pundits argue that the IMF should have focused more on the panic and less on reforms. Indeed, the variable performance of Korea (which rolled over debt) and Malaysia (which imposed capital controls) after the crisis suggest that the IMF standards overreached and contributed to the panic.

The years ahead pose a serious difficulty for all analysts. Although chairman Alan Greenspan is trying to present the situation from an optimistic perspective, things do not seem so bright as Mr.