Unkept Promises, Unclear Consequences US Economic Policy and the Japanese Response

This book examines the role of United States macroeconomic policy in the large and growing trade imbalance between Japan and the United States. To a substantial extent, it traces the causes of the current dilemma to failed U.S. macroeconomic policies. However, a careful examination of Japan's role in the bilateral trade imbalance reveals that Japan has exacerbated the problem in a variety of ways. Policy analyses, as well as econometric forecasts of the U.S. macroeconomy, are included.

This volume evaluates the role of United States macroeconomic policy in the bilateral trade imbalance with Japan, from the perspectives of leading economists in the fields of macroeconomics and international trade. Policy analyses, as well as econometric forecasts of the US macroeconomy, are included.

Preface; List of contributors; 1. Introduction Ryuzo Sato and John A. Rizzo; Part I. Reaganomic Repercussions: 2. The good, the bad, and the unexpected: lessons from American economic policy Barry P. Bosworth; 3. Macroeconomic policy during the Reagan years: 1981–1985 Herbert Stein; 4. Repercussions of grand experiments in US economic policy Roger E. Brinner; Part II. Is there Life Beyond the Trade Imbalance?: 5. US economic prospects and policy options: impact on Japan-US relations Paul A. Samuelson; 6. Major microeconomic adjustments ahead Lester C. Thurow; Part III. Japan's Response: 7. The US-Japan trade imbalance: causes and consequences from the Japanese perspective Ryuzo Sato and John A. Rizzo; Index.

This volume evaluates the role of United States macroeconomic policy in the bilateral trade imbalance with Japan, from the perspectives of leading economists in the fields of macroeconomics and international trade. Policy analyses, as well as econometric forecasts of the US macroeconomy, are included.