scholarly journals What Do We Really Know about the Transatlantic Current Account?

2019 ◽  
Vol 65 (3) ◽  
pp. 255-274
Author(s):  
Martin T Braml ◽  
Gabriel J Felbermayr

Abstract Do the USA have a current account surplus or a deficit with the EU? Since 2009, official sources disagree: The U.S. Department of Commerce claims a consistent US surplus while Eurostat reports the opposite. International transactions are notoriously difficult to measure accurately, but the size of the transatlantic discrepancy is extremely substantial: over the last 10 years, it has grown to a cumulated 1 Trillion USD. In times of severe trade policy disagreements across the Atlantic, this gap is obviously problematic. This article tries to dissect the transatlantic reporting gap. Two country-pairs—USA-UK and USA-Netherlands—account for almost the entire transatlantic discrepancy, which, in 2017, stood at about 180 billion USD. In the former case, national statistics on net services trade disagree by as much as 55 billion USD; in the latter case, there is a reporting difference in net primary income of about 60 billion USD. In contrast, data provided by the Bundesbank for the German-US current account closely mirror US data. Nonrandom measurement error and, possibly, deliberate manipulation seem to cause the observed discrepancies. (JEL codes: F14, F32, H26)

2015 ◽  
Vol 59 (12) ◽  
pp. 30-40
Author(s):  
V. Vasil'ev

The article investigates approaches taken by major political parties and civil society in the FRG toward the Transatlantic partnership. It reveals the tendencies of the prospective promotion of Berlin’s cooperation with Washington; the article also gives a forecast of further interaction between the EU and the USA, indicates the direction of discourse regarding the future Russia–Germany relations model in the context of the Ukrainian crisis and in reference to the increased transatlantic solidarity. Disputes in German socio-political circles on the issue of the FRG’s policy toward the U.S. are emerging all the time, but they have to be considered within a concrete historical and political context. Being of primary significance for all German chancellors, the Trans-Atlantic factor has been shaping itself in a controversial way as to the nation’s public opinion. This has been confirmed by many opinion polls, including the survey on the signing of the EU–U.S. Agreement on the Trans-Atlantic Trade and Investment Partnership. Chancellor A. Merkel is playing an important role: she is either ascribed full compliancy with Washington, or is being tentatively shown as a consistent government figure in advancing and upholding of Germany's and the EU's interests. A. Merkel has implemented her peace-seeking drive in undoing the Ukrainian tangle by setting up the “Normandy format” involving the leaders of Germany, France, Russia and Ukraine while having cleared it through with the U.S. President B. Obama well in advance. Despite the increasing criticism of Washington’s policy among some part of Germans, for the majority of German voters, the USA remains a country of implementable hopes, the only power in the world possessing a high education level and the most advanced technologies. Americans, for their part, are confident of the important role that Berlin plays in world politics, particularly in what concerns the maintenance of unity within the EU. Berlin aims at further constructive interaction with the USA in the frame of NATO as well as within other Trans-Atlantic formats. Notwithstanding the steady tendency toward increasing of the Washington policy’s critical perception degree in German society, officially Berlin continues as Washington’s true ally, partner and friend. There is every reason to believe that after the 2017 Bundestag elections, the new (the former) Chancellor will have to face a modernized Trans-Atlantic partnership philosophy, with a paradigm also devised in the spirit of the bloc discipline and commitments to allies. The main concern for Berlin is not to lose its sovereign right of decision-making, including the one that deals with problems of European security and relations with Moscow. Regrettably, Germany is not putting forward any innovative ideas on aligning a new architecture of European security with Russia’s participation. Meanwhile, German scholars and experts are trying to work out a tentative algorithm of a gradual return to the West’s full-fledged dialogue with Russia, which, unfortunately, is qualified as an opponent by many politicians. Predictably, the Crimea issue will remain a long-lasting political irritant in relations between Russia and Germany. Although not every aspect of Berlin’s activation in its foreign policy finds support of the German public, and the outburst of anti-American feeling is obvious, experts believe that the government of the FRG is “merely taking stock of these phenomena and ignores them”. Evident is the gap between the government's line and the feeling of the German parties’ basis – the public. It is noteworthy that the FRG has not yet adopted the Law on Holding General Federal Referendums on key issues of the domestic and foreign policy. There is every indication to assume that the real causes of abandoning the nationwide referendums are the reluctance of the German ruling bureaucracy and even its apprehensions of the negative voting returns on sensitive problems, – such as basic documents and decisions of the EU, the export of German arms, relations with the U.S., etc. The harmony between Berlin’s "Realpolitik" and German public opinion is not yet discernible within the system of Trans-Atlantic axes.


Asian Survey ◽  
2014 ◽  
Vol 54 (1) ◽  
pp. 47-55 ◽  
Author(s):  
Geoffrey C. Gunn

Ahead of upcoming elections, expectations ran high in 2013 across the archipelago for a highly pluralistic electorate. With China as a leading trading partner, the backdrop for Indonesia was steady economic growth, albeit checked by a sliding currency, a current account deficit, and a depressing culture of corruption. Mixing commerce and geopolitics, China, the U.S., and Japan all turned to Indonesia to expand their influence.


2014 ◽  
Vol 2 (1) ◽  
pp. 68-75
Author(s):  
Sudirman Sudirman

Indonesia is a country with an open economy, which means activities in developing economies are heavily influenced by the foreign sector. The openness of the economy has an impact on a country's balance of payments relating to the flow of trade and capital flows. Various efforts are needed to increase exports in order to increase the Reserves . While the policy on imports directed to protect and develop domestic production. On the other hand domestic funding constraints need to be addressed to maintain fluency in development, so that funds from abroad in the form of loans or assistance that is still very necessary. All of this is intended to maintain the stability of International Balance of Payments (BOP) that prose foreign trade can be sustained. In one there is a structure of balance of payments current account (current account). In theory consists of the balance of current account balance on goods, services account, and unilateral transfers. Positive value or an increase in the current account means there is a current account surplus and vice versa if it is negative or the so-called current account deficit decline.


2019 ◽  
Vol 19 (160) ◽  
pp. 1
Author(s):  

The economy is doing well, but supply constraints are biting. Growth has slowed as the economy has reached capacity limits, with very low unemployment even as participation has increased. Recent wage increases have been very strong, ahead of productivity. So far, inflation remains contained. The economy continues to run a current account surplus, even though domestic absorption has picked up. But the housing market is pressured, especially in metropolitan areas. Policies should balance risks of overheating against a faster-than-expected slowdown and aim to boost potential growth.


Author(s):  
Heiko D. Wijnholds ◽  
Michael W. Little

One of the biggest challenges marketers face with e-commerce is the regulatory environment, both at home and abroad. This is especially pertinent for international transactions between the U.S. and the European Union (EU). This chapter attempts to identify and categorize the major global issues involved. It also points out similarities and differences between the U.S. and the EU on such issues as regulation and self-regulation, taxation, jurisdiction and liability. The purpose of the chapter is to explain the various marketing challenges resulting from specific legal problems. Recommendations are developed for firms contemplating e-marketing to the EU.


Policy Papers ◽  
2015 ◽  
Vol 2015 (28) ◽  
Author(s):  

Before the earthquakes of April 25 and May 12, Nepal’s macroeconomic performance was relatively strong: Growth accelerated to 5.5 percent in 2013/14, thanks largely to a favorable monsoon; Inflation had been moderating, broadly in line with developments in India, but remained high at 7 percent (y/y) in March 2015; The fiscal position in 2013/14 (mid-July 2013 to mid-July 2014) was again in surplus, on account of under-execution of spending amid solid revenue growth. As a result, public debt eased further, to 25 percent of GDP. The trend of budget under-execution continued through April 2015, indicating that a small fiscal surplus looked again likely in 2014/15. Public debt remained on a declining path; The external position remained strong. The current account surplus reached 4.6 percent of GDP in 2013/14, as remittances continued to grow rapidly, reaching a record-high 28 percent of GDP. Net of remittances, however, Nepal ran a current account deficit of 23.6 percent of GDP in 2013/14. International reserves rose to US$6.2 billion by March 2015, equal to 29 percent of GDP and covering almost eight months of prospective imports. The earthquakes are expected to cause an initial slowdown in economic activity.


2002 ◽  
Vol 16 (3) ◽  
pp. 131-152 ◽  
Author(s):  
Catherine L Mann

This essay considers the underpinnings of the large U.S. current account deficit. It then tackles the question of whether the U.S. current account deficit is sustainable. A current account deficit is “sustainable” at a point in time if neither it, nor the associated foreign capital inflows, nor the negative net international investment position are large enough to induce significant changes in economic variables, such as consumption or investment or interest rates or exchange rates. Even if the current account deficit is sustainable by this definition today, its trajectory could still be creating future risks for the U.S. and global economy.


2014 ◽  
pp. 13-29 ◽  
Author(s):  
S. Glazyev

This article examines fundamental questions of monetary policy in the context of challenges to the national security of Russia in connection with the imposition of economic sanctions by the US and the EU. It is proved that the policy of the Russian monetary authorities, particularly the Central Bank, artificially limiting the money supply in the domestic market and pandering to the export of capital, compounds the effects of economic sanctions and plunges the economy into depression. The article presents practical advice on the transition from external to domestic sources of long-term credit with the simultaneous adoption of measures to prevent capital flight.


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