Research On Dollar-based International Status Of The U.S. Current Account Deficit

As one of the most vital engines of global economic growth, the pattern and level of its economic development of U.S. are always under the world attention. In the era of globalization, no country could secure healthy economic development under isolated circumstances, ignoring the influence of U.S. The U.S. balance of payment is a factor we have to attach importance to, which is not only American stake, but also impacts global capital flow and resource allocation.In the last few years, the US current account deficit,which has been existing dozens of years, obviously expanded. The Continually worsened US current account conditions and the large foreign debts have influence not only on US macroeconomic, U.S. foreign economic relationships and US dollar international status, but also on the steady of international money market, the international reserves choice and the disposition of other countries. And finally they will affect the sustainability of US current account deficit. This paper thought that the basic reason of the U.S. current account deficit continually expanding is the imbalance and operation of the US economy. Then US dollar international status is the basic reason that supports the U.S. current account deficit continually expanding.This paper talks about the relationship of consumption,savings,investment and the relationship with the international payments first, analyzes the dollar's position in today's international monetary system and the impact of the dollar's international status through financial crisis. Through analyzing the causes of the U.S. current account deficit comprehensive, concluded that the U.S. current account deficit is the inevitable result of the U.S. monetary system. And analyzes the impact of the U.S. consumption-investment imbalances and saving-investment imbalances to the U.S. current account deficit empirically.Then analyzes the sustainability of U.S. current account deficit from the perspective of both short and long term. Based on the conclusions above, we discuss the necessity and urgency of the adjustment of the current U.S. current account deficit orderly, and bring forward some pieces of policy advice. These suggestions aim at the international economic policy coordination related to the adjustment of the US current account deficit and the corresponding policy options of China.