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Wednesday, March 8, 2017

Disentangling a Worsening Trade Deficit: Sector-Specific Industrial and Macro Economic Policy


The U.S. trade deficit rose 9.6% in January, 2017, to the highest level since 2012. The gap of $48.5 billion of exports exceeding imports looks daunting, yet the story is more complex at the sector level.[1] According to Neil Irwin of The New York Times, “What really matters is not whether the trade deficit is rising or falling. What matters is why?”[2] Distinguishing macro factors such as a strengthening dollar from sectoral strengths and weaknesses is thus necessary.
The full essay is at "Disentangling a Worsening Trade Deficit."


1. Neil Irwin, “The Huge January Trade Deficit Shows Trump’s Hard Job Ahead,” The New York Times, March 7, 2017.
2. Ibid.




The Port of Oakland (Source: Jim Wilson/NYT)