Conference Paper

Comments on \\"Understanding global imbalances\\"

Abstract: In Australia, we debated the issue of sustainability of current account deficits extensively during the 1980s. A lot of the arguments that are being aired at the moment bear a striking similarity to the debate that occurred in Australia throughout the 1980s. Now, two decades on, by and large, the majority view of economists in Australia is very similar to that put forward in this excellent paper by Richard Cooper. Although it must be said that while most economists are relaxed about the current account, it still can engender a significant amount of fear amongst politicians and the public, almost the reverse of the situation in the US. The view reached in Australia is akin to the ?consenting adults? view of the Lawson doctrine, although it should be noted that this argument was made by John Pitchford and Max Corden quite some time before Lawson.

Keywords: Retirement income; Saving and investment; Balance of trade; Pensions; International trade;

Bibliographic Information

Provider: Federal Reserve Bank of Boston

Part of Series: Conference Series ; [Proceedings]

Publication Date: 2006

Volume: 51