Trade Deficit Isn’t a Scorecard, It’s a Game

Neil Irwin had the most accessible trade deficit explainer I’ve seen in today’s New York Times, to which Dean Baker offered some useful additional context on policy and historical context.

I’ve attempted to distill what both Neil and Dean write into a game-like flowchart. In it, I reduce the world to two countries – the US and China – and explore the possible outcomes and decision-points facing each. Other than the top right bubble (which was my added point), everything else comes from Neil and Dean’s pieces.

deficit

This is of course a considerable simplification, but I think it captures the main points pretty accurately.

 

Advertisements

Leave a comment

Filed under Uncategorized

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s