This is why I said earlier that
the impact trade imbalances might have on the U.S. economy is far easier to understand than we might at first think.
Not exact matches
It is the rare combination of a simultaneous
impact of hugely restrictive fiscal policies, gravely damaged channels of financial intermediation and crippling
trade imbalances in especially depressed segments of the world economy - the euro area - where there is an obvious need for a strong stimulation of domestic demand in countries of that region whose
trade surpluses range from 2 percent to nearly 9 percent of gross domestic product (GDP).
In other words, the budget
imbalance between taxes and government expenditures has a direct
impact on foreign
trade imbalances.
But with the
impact on Africa of China's downturn and a growing
trade imbalance — China exported $ 102 billion to Africa last year but imported only $ 67 billion from the continent — skeptical voices are increasing.