International Financial Issues in the Pacific Rim: Global Imbalances, Financial Liberalization, and Exchange Rate Policy
Takatoshi Ito and Andrew K. Rose
Abstract
The imbalanced, yet mutually beneficial, trading relationship between the United States and Asia has long been one of international finance's most perplexing mysteries. Although the United States continues to post a substantial trade deficit—and China reaps the benefits of a surplus—the dollar has yet to sink in the face of ever-increasing account disparities. This book explains why the United States enjoys a seemingly symbiotic relationship with its trading partners despite stark inequities in the trade balance, especially with Asia. This study also debunks the assumed link between economic o ... More
The imbalanced, yet mutually beneficial, trading relationship between the United States and Asia has long been one of international finance's most perplexing mysteries. Although the United States continues to post a substantial trade deficit—and China reaps the benefits of a surplus—the dollar has yet to sink in the face of ever-increasing account disparities. This book explains why the United States enjoys a seemingly symbiotic relationship with its trading partners despite stark inequities in the trade balance, especially with Asia. This study also debunks the assumed link between economic openness and low inflation in the region, identifies the serious gap between academic and private-sector researchers' understanding of exchange rate volatility, and analyzes the liberalization of Asian capital accounts. It will have broad implications for global trade and economic policy issues in Asia and beyond.
Keywords:
global trade,
international finance,
trade deficit,
United States,
Asia,
trading partners,
economic policy,
trade balance,
inflation,
Asian capital accounts
Bibliographic Information
| Print publication date: 2008 |
Print ISBN-13: 9780226386829 |
| Published to Chicago Scholarship Online: February 2013 |
DOI:10.7208/chicago/9780226387086.001.0001 |
