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Manufacturing is still critical to the economy United States. Clyde Prestowitz, says it's time to start realizing the positive spillovers that manufacturing creates... Read more  

Events & Activities

Stephen Olson at Chinese Development Institute Conference


 Clyde Prestowitz giving presentation to CDI...


Steve Olson teaching trade negotiations at the Mekong Institute...


Stephen Olson to speak at upcoming workshop organized by the International Institute for Trade and Development on 

"Economics of GMS Agricultural trade in goods and services towards the world market"

Chiangmai, Thailand Sep 8-12.

International Trade

Incomplete Markets and the Current Account Deficit

Click Here to Download the Full Report in PDF Format

Conventional economic wisdom argues that the reason the U.S. has a trade deficit with Japan is because of the low U.S. savings rate, which in turn, is allegedly caused by spendthrift consumers not saving enough, and by the large U.S. budget imbalance. In this paper, Paul Willen argues that other factors provide compelling insight into the trade deficit, particularly its persistence. He provides a cogent demostration of how the interaction between a complete market, such as that of the U.S., and an incomplete market, such as Japan's, can be predicted to cause a persistent trade deficit.

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Latest Publications

The Betrayal of American Prosperity.

The Trans-Paific Partnership and Japan.

Making the Mexian Miracle.

Industrial Policy and Rebalancing in the US and China.

The Evolving Role of China in International Institutions.


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Economic Strategy Institute

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Ph (202) 213-7051  |  Fax (202) 965-1104  |  info@econstrat.org