US TRADE DEFICIT AT LOWEST LEVEL SINCE OCTOBER 2009 Read more: http://www.businessin


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Nov 12, 2012
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Bassano del Grappa
Evan Soltas issues a challenge for fiscalists to explain why fiscal contraction - a whopping 50% decrease in the deficit - hasn't resulted in a double-dip recession. Are the market monetarists onto something, or have the fiscalists got a satisfactory answer?

Over time net spending also comes into play. If the government would run a tight fiscal stance over time, that would force non-government either to "borrow" more to maintain position or else give up position, assuming that the trade balance remains the same.

However, in the present case, net exports have also increased, somewhat offsetting fiscal contraction

The U.S. trade deficit shrank way more than expected, by more than 12% to $34.3 billion — the lowest level sicne October 2009.

And it's all bcause of oil imports, which fell 1.9%.

Consensus forecast was for the deficit to have closed to $40 billion, compared with $39.3 billion prior.

Imports fell 1.9%, while exports climbed 0.9%.

Read more: US Trade Data For November 2013 - Business Insider

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