haku: @indexterm Financial policy / yhteensä: 417
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| Tekijä: | Collignon, S. |
| Otsikko: | Adjusting the U.S. current account deficit: What role for the dollar, euro and yen? |
| Lehti: | Journal of Asia-Pacific Business
2006 : VOL. 7:2, p. 5-26 |
| Asiasana: | financial policy exchange rates volatility currency investments trade Asia Europe USA |
| Kieli: | eng |
| Tiivistelmä: | The world economy is characterized by a 3-polar structure btw. the United States of America (U.S.), Europe (here as: E.) and Asia (as: A). This paper argues that the stable exchange rates (here as: ER./ERs.) btw. A. currencies and the U.S. dollar have made an important contribution to A.'s rapid economic growth. Reducing volatility has lowered risk and uncertainty for investors and the undervalued real ER. level has increased the A. investments' profitability. However, the need to correct the U.S. current account may require policies putting this successful arrangement into question with consequences for worldwide growth. As a solution to this problem, A. economies (incl. China) may want to consider re-pegging their currencies into a basket containing mainly the euro and the yen which would preserve the benefits of stable ERs. for A., avoiding an excessive appreciation of the euro, while giving the U.S. the flexibility to adjust its external imbalance. |
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