encompasses the two biggest countries in the world: the U.S.A. and China. Many authors defend the assertion that the relationship … increased its deficit in the last decade, China has improved its surplus. To investigate this relationship, this study performed … for the external balances of America and China in 2008. The dynamics of the Chinese external balance changed after the …

interesting implications for how one views the huge US current account deficit and how the emergence of China's savings surplus … also at a lower income level than without the China effect. Moreover, we argue that the lower real interest rates resulting … from excess OPEC savings have facilitated the adjustment to the subprime crisis. -- China factor ; current account …

interesting implications for how one views the huge US current account deficit and how the emergence of China's savings surplus … also at a lower growth rate than without the China effect. Moreover, we argue that the lower real interest rates resulting … from excess OPEC savings have facilitated the adjustment to the subprime crisis. -- China factor ; current account …

rates. We set up a two-country two-sector model for the US-China with two asymmetries. First, we assume that the size of … China initially is one third of the US but its size becomes half of the US in the next ten years consistent with the fast … growth expectations in China. Secondly, we assume that China initially runs a net export surplus against the US. Then we …