Future of Keynesianism

Mark Jones Jones_M at netcomuk.co.uk
Thu Jun 25 15:05:57 PDT 1998

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.


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

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