4、Ultimately what drives trade conflict is when the trade surplus country cannot adjust quickly, while high unemployment in the trade deficit country creates impatience for rapid change.
1、A happy ending: the residents of the deficit country could work harder and more productively.
6、Thanks to its population growth and the dollar's role as a global currency, America has more fiscal room than any other big-deficit country.
5、Focusing exclusively on the imbalances as Krugman does, while ignoring why the United States became a deficit country, gives us a grossly incomplete understanding of what happened.
7、Over time that reduces the deficit as the surplus country's exports get more expensive and the deficit country's exports get cheaper.
3、The currency of a surplus country will, all things being equal, rise in value, while that of a deficit country will sink.
2、The residents of the deficit country spend less, leading to a drop in their deficit, and the residents of the surplus country spend more, leading to a drop in their surplus.