Years of Living Dangerously: From the Twin Deficits to the Balance of Financial Terror?Author(s): Paul Isbell
Publisher(s): Elcano Royal Institute of International and Strategic Studies, Madrid, Spain
Date of publication: 1 Jun 2005
Volume number: 2005
Issue number: 28
Series: Elcano Royal Institute Working Papers
Description: This working paper examines whether US growth is sustainable in light of the country's large deficit. The US' growing account (or "external") deficit, together with its significant government budget (or "internal") deficit, has begun to place real limits on future US growth. In this paper the author analyzes the scope and nature of the deficits and discusses the reasons that have generated them, particularly looking at the role of Asia and China.General note: © 2005 Elcano Royal Institute of International and Strategic Studies.