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A Balancing Act: How to End America's Trade Deficits

Dimitri Papadimitriou

Economics One-Pager Archive from Levy Economics Institute

Abstract: Now that America's financial institutions have been brought back from the brink, the greatest threat to global economic stability is the gigantic trade imbalance between the United States, China, and other trading partners. A second big threat to economic stability, in the longer run, is global warming. Both problems are related to America's addiction to cheap imports and foreign oil—bad habits that a clever cap-and-trade system could help us kick at last.

Date: 2010-05
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