The Us Current Account Deficit Sustainable Problem Research

In the last few years, the global imbalance has become an important character of world economy, which is concerned by scholars both at home and broad, government and international organizations. The huge and growing US current account deficit has become the most important part of global imbalance which represents great threat to the sustainability of the US macroeconomic and the stability of current international currency system. This paper thought, the increasing saving-investment gap was the basic reason of the US current account deficit and the US dollar status in the international currency system was the reason that supported the current account deficit continually expanded. However, the large foreign debts not only influenced US foreign economic relationships, but also eroded the basic of continued current account deficit internally and may eventually lead to the unsustainability of the deficit. There are totally six sections to introduce and analyze the deficit in this thesis.Chapter1first introduces the background, the theoretical and practical significance of this paper, and then introduces the total structure of the thesis. Chapter2comments on the literature of the decision theory of the current account balance and the argue on US current account sustainability. Chapter3recalls the US current account imbalance between different times and then analyzes the cause of this imbalance. In chapter4we discuss the relationship of US dollar supply and US current account deficit sustainability in both Bretton woods system and new Bretton woods system based on how US dollar established its international status. Chapter5analyses the practical conditions of the US net external debt sustain, further seeks the answer whether the US current account deficit can sustain. Chapter6constructs an econometrics model to study the reason why US current account deficit expands and then makes a brief analysis on the adjustment direction of the US current account deficit from the global angel. In the end of the paper, we summary the major viewpoints and conclusions and prospect the study methods in the further research.