Future of Keynesianism

[Mark Jones]

The BIS Annual Report just out shows 1997 current account balances as
follows. The US deficit was $166bn. Canada and Australia weighed in next
with $12 bn and $13 bn deficits (unusually, the UK showed a $7bn surplus).
The Japanese surplus was $97bn. The total EU surplus was $124 bn. Thus the
anglo-saxon deficits ($191bn) more or less match the EU/Japanese surplus
($221bn). Most of the Asian ex-tigers showed deficits. Without anglo-saxon
demand, given the collapse of Japanese domestic demand and the sluggishness
of Germany and France, the world would have gone into recession quicker than
it will.

Mark

Enrique Diaz-Alvarez wrote:


> Mark Jones wrote:
> >
>
> > [...]global
> > activity is supported almost entirely by the anglo trade deficits
>
> Forgive my ignorance. What exactly does this mean? It would seem to me
> that anglo trade deficits account for a pretty small percentage of world
> trade, even if one counts the EU as a single block.
>
> Enrique