It's business models, stupid!
In contrast to a massive current account deficit against China, the US runs a current account surplus with respect to the European Union. The US-EU surplus is largely driven by a positive service balance and primary incomes originating from US investments abroad. Services and primary incomes overcompensate the US goods trade deficit with the EU. Rather than representing a 'rip-off', the different balances reflect the economies' different business models.
Year of publication: |
2018
|
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Authors: | Diermeier, Matthias ; Hüther, Michael ; Jung, Markos |
Publisher: |
Köln : Institut der deutschen Wirtschaft (IW) |
Saved in:
freely available
Series: | IW-Kurzbericht ; 33/2018 |
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Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Research Report |
Language: | English |
Other identifiers: | 1024419835 [GVK] hdl:10419/179944 [Handle] RePEc:zbw:iwkkur:332018 [RePEc] |
Source: |
Persistent link: https://www.econbiz.de/10011864765
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