US consumers keep the world out of recession

Article Abstract:

The US continues to exert very strong influence over the world economy. Its domestic demand alone accounts for 28% of world GDP, and it remains one of the key driving forces behind international economic growth, despite the expansion of emerging economies. It is clear that domestic demand in the US remains too strong, while domestic demand in many other parts of the world is not strong enough. This could cause considerable economic difficulties in 1998, even though it is unlikely that there will be a recession. The value of the dollar may fall as trade imbalances between the US, Japan and the European Union rise.

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How the US miracle might end

Article Abstract:

Total private sector expenditure in the US is exceeding private sector income by around 2.5% of GDP each year, according to economist Wynne Godley. This implies that US households are building up debt. It is possible to argue that this situation is not sustainable, although the rise in the private sector deficit has not yet reached dangerous levels. It is likely that the process of debt accumulation will become much more extreme before there are indications of any form of resolution.

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Cold facts collide with new paradigm

Article Abstract:

Technical change has played only a minor role in US economic growth during the 1990s. The pace of technical change has slowed down during the 1990s, and the extensive investment in computers has boosted economic growth by only a minimal amount. These findings go against the views of those who claim that information technology will create a new era of rapid gross domestic product growth with only limited inflation pressures.

United States, Electronic Computer Manufacturing, Product information, Computers & Auxiliary Equip, Information Systems, Computer industry, Economic aspects, Technological innovations

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