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.