Journal of Economic Perspectives: Vol. 16 No. 3 (Summer 2002)


Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter


JEP - All Issues

Perspectives on the U.S. Current Account Deficit and Sustainability

Article Citation

Mann, Catherine L. 2002. "Perspectives on the U.S. Current Account Deficit and Sustainability." Journal of Economic Perspectives, 16(3): 131-152.

DOI: 10.1257/089533002760278758


This essay considers the underpinnings of the large U.S. current account deficit. It then tackles the question of whether the U.S. current account deficit is sustainable. A current account deficit is "sustainable" at a point in time if neither it, nor the associated foreign capital inflows, nor the negative net international investment position are large enough to induce significant changes in economic variables, such as consumption or investment or interest rates or exchange rates. Even if the current account deficit is sustainable by this definition today, its trajectory could still be creating future risks for the U.S. and global economy.

Article Full-Text Access

Full-text Article (Complimentary)


Mann, Catherine L.


View Comments on This Article (0) | Login to post a comment

Journal of Economic Perspectives

Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)


JEP - All Issues

Virtual Field Journals

AEA Member Login:

AEAweb | AEA Journals | Contact Us