Online:
Visits:
Stories:
Profile image
By Cafe Hayek (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

Dan Griswold’s New Paper on Trade Deficits

Tuesday, March 14, 2017 12:49
% of readers think this story is Fact. Add your two cents.

(Before It's News)

(Don Boudreaux)

Tweet

Here’s the hot-off-the-e-press (and also off the metal press) new paper on trade deficits by my Mercatus Center colleague Dan Griswold.  It’s superb.  I encourage you to read it fully and carefully.

The abstract:

By focusing only on the trade deficit, critics miss the full economic benefits of a more open American economy. This paper provides original analysis of the total inflow and outflow of dollars through numerous “pipes” that make up the plumbing of US commerce with the rest of the world. It explains how underlying macroeconomic factors determine the size and direction of America’s trade balance, why bilateral deficits with trading partners do not indicate a failure of US trade policy, and why efforts to employ trade policy to fix the overall trade deficit or bilateral deficits would be futile and self-damaging. Among the key policy conclusions: America’s net positive inflow of capital year after year indicates the continuing attractiveness of the United States as a destination for foreign investment; imports benefit US consumers as well as producers; and direct foreign investment abroad by US companies is not primarily a platform for importing goods and services back to the United States but for expanding sales to foreign customers.



Source: http://cafehayek.com/2017/03/dan-griswolds-new-paper-on-trade-deficts.html

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories
 

Featured

 

Top Global

 

Top Alternative

 

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.