An Examination of International Trade Data in the 1980s

FRB Richmond Economic Review, Vol. 75, No. 2, March/April 1989, pp. 21-27

7 Pages Posted: 2 Nov 2012

See all articles by Michael Dotsey

Michael Dotsey

Federal Reserve Bank of Philadelphia

Date Written: 1989

Abstract

This article examines three competing hypotheses and their ability to explain events in international financial markets during the 1980s. The rival hypotheses view the trade deficit as caused alternatively by large U.S. budget deficits, by tight U.S. monetary policy, or by real shocks to investment resulting from changes in the U.S. tax code. While no entirely consistent explanation emerges, the real-shock hypothesis seems to match the data best.

Suggested Citation

Dotsey, Michael, An Examination of International Trade Data in the 1980s (1989). FRB Richmond Economic Review, Vol. 75, No. 2, March/April 1989, pp. 21-27, Available at SSRN: https://ssrn.com/abstract=2125344

Michael Dotsey (Contact Author)

Federal Reserve Bank of Philadelphia ( email )

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Philadelphia, PA 19106-1574
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