| Description: | The nation's trade deficit is equal to the imbalance between national investment and national saving. The financial turmoil and economic contraction during 2008 reduced the gap between national saving and investment. The result was a decline in the trade deficit and the net inflow of capital. If total net capital inflows decline, mainstream economics suggests, all else held constant, that the dollar and trade deficit would decline, U.S. interest rates would rise, and U.S. spending on capital goods and consumer durables would fall, all else equal. |
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| Creator(s): | Labonte, Marc |
| Creation Date: | June 29, 2009 |
| Partner(s): |
UNT Libraries Government Documents Department
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| Collection(s): |
Congressional Research Service Reports
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| Usage: |
Total Uses: 52
Past 30 days: 5
Yesterday: 0
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| Creator (Author): |
Labonte, Marc
Specialist in Macroeconomic Policy |
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| Publisher Info: |
Publisher Name: Congressional Research Service, Library of Congress
Place of Publication: Washington, D.C.
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| Original Creation Date: | June 29, 2009 | |
| Description: | The nation's trade deficit is equal to the imbalance between national investment and national saving. The financial turmoil and economic contraction during 2008 reduced the gap between national saving and investment. The result was a decline in the trade deficit and the net inflow of capital. If total net capital inflows decline, mainstream economics suggests, all else held constant, that the dollar and trade deficit would decline, U.S. interest rates would rise, and U.S. spending on capital goods and consumer durables would fall, all else equal. |
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| Physical Description: |
6 pages. |
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| Partner: |
UNT Libraries Government Documents Department
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| Collection: |
Congressional Research Service Reports
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| Identifier: |
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| Resource Type: | Text | |
| Format: | Text | |
