Deficits and inflation: an open economy model of the United States

Existing explanations of European monetary integration, emphasizing economic interdependence, issue linkage, institutions, and domestic politics, take a predominantly regional approach. In the international monetary thesis developed here, I argue that U.S. policy disturbances, transmitted through the international monetary system, created compelling incentives for European states to cooperate on exchange-rate and monetary policy. I develop a general theory of macroeconomic power, based on open economy macroeconomics, and show how the exercise of such influence can drive regional monetary integration. This article then tests the international thesis with reference to monetary integration within the European Union by examining four periods in which the United States acted to stabilize the international monetary system and seven episodes in which it disrupted the system. European governments and central banks reduced regional monetary cooperation when the United States supported system stability and strengthened it after each episode of disruption. The evidence thus strongly supports the inference that the link is causal.

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La collaboration scientifique et technologique en Amérique du Nord : un point de vue Canadien

Études internationales ◽

10.7202/703167ar ◽

2005 ◽

Vol 24 (2) ◽

pp. 269-296

Author(s):

Charles H. David ◽

Paul Dufour ◽

Janet Halliwell

Keyword(s):

United States ◽

Open Economy ◽

North American ◽

Small Open Economy ◽

Innovation System ◽

The United States ◽

Technology And Innovation ◽

Continental Scale ◽

Science Technology ◽

Science Technology And Innovation

Canada, as a country with a small, open economy, faces the immediate challenge of learning to shape dynamic comparative advantage in the emerging international economy. About 75 % of Canada's trade linkages are with the United States, and a very large component of the Canadian experience of « globalization » is driven by North American economic integration. This integration is taking place in the absence of institutions and policy mechanisms to promote and manage science, technology, and innovation relations on a continental scale. Bilateral s & T arrangements centered on the United States presently characterize the North American innovation System. Circumstances in North America pose three sets of challenges to Canadian s & T policy. 1) Science and technology are increasing in importance in international trade, environmental, and social/cultural matters. This means that Canada must learn to improve its management of an increasingly internationalized domestic s & T System. 2) Canada must cultivate mutually beneficial bilateral s & T relationships with its two partners in NAFTA, Mexico and the United States. 3) Canada must identify where its interests lie in the development and governance of trilateral and international rules and arrangements for science, technology, and innovation.

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The Money Neutrality Proposition: Is Boosting Money Supply A Solution To US Economic Problems?

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v29i2.7644 ◽

2013 ◽

Vol 29 (2) ◽

pp. 361

Author(s):

Jean Emmanuel Fonkoua

Keyword(s):

United States ◽

Monetary Policy ◽

Money Supply ◽

Foreign Exchange ◽

Open Economy ◽

Well Being ◽

The United States ◽

Reduced Form ◽

Industrialized Countries ◽

Final Prediction Error

This paper unfastens the new classical structural model and broadens the reduced form output equation to investigate the money neutrality proposition in the United States. The hypothesis that any predictable monetary policy has no influence on output is extended by the inclusion of foreign exchange rationing to the supply side of the economy as cointegrated with money supply. The final prediction error determines the proper lag length that is used by the dynamic analysis to examine the causality relationship between imports, foreign price, foreign income, and output. The vector autoregressive is used to determine the exogeneity property of foreign exchange and output; it also helps extract the anticipated and unanticipated components of foreign exchange and money series. Empirical evidence provides considerable support for short run cyclical movements in the output of highly industrialized countries in affecting the real output in the United States. Indeed, any policy response in raising output should take into account the well-being of other developed countries. Predicted or not, an increase in the level of growth of other advanced countries does not leads to offsetting expectation and results in raising the economic growth. Empirical test presents no evidence that boosting the money supply leads to an increase in the level of growth. The result also refutes the view that the United States can quickly recover through a monetary policy aimed at depreciating the dollar and stands against the idea that devaluation tends to expand domestic output in industrialized countries. Incompatible with the economic logic is the lack of support of the apparent reality of output determination in industrialized countries open economy models.

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Statistical Analysis of the Performance of a Big and Open Economy: The Case of the U.S.

Scientific Bulletin of the National Academy of Statistics Accounting and Audit ◽

10.31767/nasoa.4.2018.01 ◽

2018 ◽

pp. 10-17

Author(s):

O. V. Zhuravliov ◽

О. М. Simachova

Keyword(s):

United States ◽

Open Economy ◽

Developing Economies ◽

Negative Impact ◽

The United States ◽

Us Economy ◽

The Us ◽

The World ◽

Macroeconomic Indicators ◽

The Impact

The US economy is one of the richest and most diversified economies in the world and keeps its leadership in the global economy for the past 100 years. The United States is a global leader in computer technology, pharmaceuticals and the manufacture of medical, aerospace and military equipment. And although services make up about 80% of GDP, the US remains the second largest producer of industrial goods in the world and is a leader in research and development. President Donald Trump was elected in November 2016, promising a big gap with his predecessor’s regulatory, tax and trade policies. Therefore, the current socio-economic status of the USA and the possible ways of its development in the future are interesting for studying the impact on other economies, in particular, on the Ukrainian economy and the search for new and optimal ways of developing relations between the United States and Ukraine. Key macroeconomic indicators of the US economy in 2011–2018 are analyzed, demonstrating the influence of Donald Tramp’s new policy on changes in the indicators of the economy, the labor market, trade, etc., as well as possible ways of development in the coming years. The review of key macroeconomic indicators gives grounds for classifying the American economy as healthy one. Rates of GDP growth will remain in the range of 2 to 3%. These rates of growth in the world’s largest economy are callable to ensure a substantial increase in the global activity. But uncertainties in the politics may hinder global growth and have clearly negative impact on the investment growth in developed and developing economies.

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Taxing Consumption and Other Sins

The Journal of Economic Perspectives ◽

10.1257/jep.21.1.49 ◽

2007 ◽

Vol 21 (1) ◽

pp. 49-68 ◽

Cited By ~ 27

Author(s):

James R Hines

Keyword(s):

United States ◽

Open Economy ◽

Income Tax ◽

The United States ◽

State Governments ◽

Payroll Taxes ◽

Consumption Taxation ◽

The World ◽

And Control ◽

Consumption Taxes

Federal and state governments in the United States use income and payroll taxes as their primary tools to collect revenue. Relative to the United States, governments in the rest of the world rely much more heavily on taxing consumption. Heavy American reliance on income rather than consumption taxation has not served the U.S. economy well. The inefficiency associated with taxing the return to capital means that the tax system reduces investment in the United States and distorts intertemporal consumption by Americans. While the economic logic of consumption taxation is compelling even for a closed economy, it is even more powerful for an open economy exposed to the world capital market. Consumption taxes in the form of excises can be designed to help protect the environment and control other externalities. Excise taxes can also serve the function of more closely aligning tax burdens with the benefits that taxpayers receive from certain government services. Understandable concerns arise about the distributional consequences of consumption taxation, but a system that relies heavily on consumption taxes, particularly if accompanied by an income tax, can be as progressive as any income tax the United States would realistically want to adopt.

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Globalization minus One: The Emerging Contours of a New Global Economic Order

Scholedge International Journal of Management & Development ISSN 2394-3378 ◽

10.19085/journal.sijmd041201 ◽

2018 ◽

Vol 4 (12) ◽

pp. 125

Author(s):

M S S El Namaki

Keyword(s):

United States ◽

Open Economy ◽

Global Economy ◽

World Economy ◽

Free Market ◽

Trade Agreements ◽

The United States ◽

International Trade Agreements ◽

Cross Country ◽

New Framework

Disruption induces disequilibrium. Today’s global economy is the case in point. Powerful sources of disruption are undermining classic premises of global economic equilibrium and, in the process, changing the contours of the World economy. Long cherished globalization premises of free market, open economy, small government, private initiative and deregulation are being challenged. Sources of this challenge are numerous but the most striking is the recent rapid and abrupt USA reclusive and isolationist measures. The United States, the key global economic player, is assuming a protective posture by introducing tariff barriers, annulling international trade agreements, promoting self-serving job creation slogans and hastily recalling industries and services. And all this is uttering threats of crude retaliation. National interest seems to have taken precedence over cross country gains. And others seem to be working on a new framework: globalization minus one. A globalization that is based on new premises and involves the majority of global economic players but one: the United States. This will be the focus of the following article.

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Fighting Third World Nationalism

Imperialism and the Developing World ◽

10.1093/oso/9780190069629.003.0006 ◽

2020 ◽

pp. 253-324

Author(s):

Atul Kohli

Keyword(s):

United States ◽

Cold War ◽

Open Economy ◽

Poverty Alleviation ◽

Third World ◽

Developing World ◽

The United States ◽

Communist Regime ◽

Economic Program ◽

The Cold War

This chapter analyzes American interventions in the developing world during the Cold War. While a struggle against communism provided the context of the interventions in Iran, Vietnam, and Chile, the deeper motive was to dislodge nationalists who challenged American design to create a worldwide open economy order. The mechanisms varied, from covert coups in Iran and Chile to hard militarism in Vietnam. The benefits to the United States also varied; it experienced nominal success in Chile but a costly defeat in Vietnam. Democracy in both Iran and Chile was derailed, and both countries remained commodity exporters under American tutelage. By contrast, a repressive communist regime came to control Vietnam that has successfully pursued an economic program of industrialization and poverty alleviation.

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A Political Economy Model of Congressional Careers

The American Economic Review ◽

10.1257/0002828053828464 ◽

2005 ◽

Vol 95 (1) ◽

pp. 347-373 ◽

Cited By ~ 174

Author(s):

Daniel Diermeier ◽

Michael Keane ◽

Antonio Merlo

Keyword(s):

United States ◽

Political Economy ◽

Public Sector ◽

Structural Model ◽

Career Decisions ◽

The United States ◽

Term Limits ◽

United States Congress ◽

Economy Model ◽

Private And Public

Our main goal is to quantify the returns to a career in the United States Congress. We specify a dynamic model of career decisions of a member of Congress andestimate this model using a newly collected dataset. Given estimates of the structural model, we assess reelection probabilities, estimate the effect of congressional experience on private and public sector wages, and quantify the value of a congressional seat. Moreover, we assess how an increase in the congressional wage or the imposition of term limits would affect the career decisions of politicians and the returns from a career in Congress.

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Evaluating Changes in the Distribution of Income in the United States

Journal of Income Distribution ◽

10.25071/1874-6322.710 ◽

1995 ◽

Author(s):

J. A. Bishop ◽

J. P. Formby ◽

R. Sakano

Keyword(s):

United States ◽

Income Inequality ◽

Random Walks ◽

Size Distribution ◽

Open Economy ◽

Strong Evidence ◽

The United States ◽

Conditional Mean ◽

Income Distributions ◽

Distribution Of Income

Insights gained from previous macroeconomic studies of the size distribution of U.S. incomes are incorporated into a richer model that considers the possibility of random walks and cointegration. The effects of macroeconomic, demographic, structural, and policy variables on quintile conditional mean incomes and Lorenz ordinates are estimated using more that four decades of data. The results are interpreted in terms of the powerful dominance method of evaluating entire income distributions. The model yields strong evidence of random walks and cointegration. Several findings from earlier studies are confirmed, and heretofore unrecognized influences on the size distribution of income are identified. Some surprising results emerge, especially as they relate to the effects of a more open economy on income inequality.

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When a Robot Makes Your Dinner: A Comparative Analysis of Product Level and Customer Experience Between the U.S. and Chinese Robotic Restaurants

Cornell Hospitality Quarterly ◽

10.1177/19389655211052286 ◽

2021 ◽

pp. 193896552110522

Author(s):

Emily Ma ◽

Yafang Bao ◽

Leijun Huang ◽

Danni Wang ◽

Misun (Sunny) Kim

Keyword(s):

United States ◽

The United States ◽

Experience Economy ◽

Theoretical Frameworks ◽

Economy Model ◽

Service Levels ◽

Product Level ◽

Product Service ◽

Cultural Implications ◽

Technology Applications

Integrating two theoretical frameworks, the product level theory and the experience economy model, this research analyzed and compared robotic technology applications and customer experiences in selected case robot restaurants in the United States and China. Guided by the product level theory, we first analyzed in which product/service levels were robots applied in each case restaurant in Study 1. Then in study 2, guided by the experience economy model, we further explored customers’ dining experiences and compared if customers’ experience differs due to variations in product/service levels that robot applied. The study first contributes to the product level theory by extending its application to the context of robotic restaurants. It also contributes to the experience economy literature, and in particularly, whether applications of robotic technologies at different product levels matter in customers’ dining experience. The study included case restaurants both from the United States and China, presenting findings with cultural implications. Given the challenges presented by COVID-19 and the industry is exploring alternative ways for service delivery and food production, such a study is particularly meaningful.

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