By Desmond Lachman in Washington
The US trade deficit has widened steadily over the past two years, reaching a record high of almost $1tn annually. As a result of Washington’s expansive budget policy at this late stage in the economic cycle, analysts expect that over the next two years the US budget deficit will rise to a peace-time high of more than $1tn. This makes it probable that the US will face a twin deficit problem – an outsized budget deficit and an outsized trade deficit – last seen in the 1980s during Ronald Reagan’s presidency.
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Meeting: The efficacy of macroprudential policies
OMFIF organises a roundtable discussion with Donald Kohn, member of the Financial Policy Committee at the Bank of England and former vice-chairman of the Federal Reserve (2006-10).
Topics of discussion will focus on macroprudential policies and their efficacy in monitoring risks and vulnerabilities in the financial system, and the implications of the structural transformation of the world economy for central banks.
Request to attend the meeting