The United States: Japan Current Account Imbalance: A Review

IMF Policy Discussion Papers, March 1, 1994

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The United States: Japan Current Account Imbalance: A Review

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Bibliographic details

• Authors: Stephen S. Golub
• Published: March 1, 1994
• Series: IMF Policy Discussion Papers
• DOI: https://doi.org/10.5089/9781451970708.003

Main findings (macroeconomic perspective)

• Japan’s surpluses are not surprising given global trends in saving and investment.
• The current accounts of the United States and Japan have both responded to exchange rate changes in a normal fashion with about a two-year lag.
• The Japanese current-account surplus is not attributed to exchange rate response anomalies.

Microeconomic and trade-policy issues

• A key issue in the debate is the nature of Japanese trade policy and its possible effects on trade patterns.
• Empirical studies attempting to determine whether Japan’s trade prices and quantities are abnormal have arrived at conflicting conclusions.

Author notes and citation guidance

• This is a Paper on Policy Analysis and Assessment; the author(s) welcome comments on the present text.
• Citations should refer to a Paper on Policy Analysis and Assessment of the International Monetary Fund, mentioning the author(s) and the date of issuance.
• The views expressed are those of the author(s) and do not necessarily represent those of the Fund.