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7min chapter
S8 Ep2: What policymakers get wrong about US trade deficits
VoxTalks Economics
Understanding the U.S. Trade Deficit Dynamics
This chapter explores the intricate factors influencing the U.S. trade deficit, contrasting the 'savings glut' with the impact of the 'China shock.' It highlights the relationship between domestic borrowing and foreign capital demand, along with the roles played by exchange rates and financial innovations during the early 2000s.
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