maybe he's reversing the twin deficits "logic." The usual says that the US saving deficit (gov't deficit + private dissaving) causes the US trade deficit. If you reverse this, then lowering the trade deficit would reduce the saving deficit. Of course, there's no logic either way, since it's an accounting identity.
On 3/23/06, Doug Henwood <[EMAIL PROTECTED]> wrote: > raghu wrote: > > >I see your point but it still doesn't seem to me to be as crystal > >clear as Roach seems to think. It must be Roach's neo-classical econ > >education that made him choke on his bite of watermelon :). > > > >(For instance I can easily see the sales of HDTV slowing with a > >price increase.) > > They would, no doubt. But, given their current propensity to consume, > Americans would just spend the money on something else. Why would it > increase their saving? > > Doug > -- Jim Devine / "There can be no real individual freedom in the presence of economic insecurity." -- Chester Bowles
