Philadelphia Fed Business Review, 1st Quarter 2007

The Federal Reserve Bank of Philadelphia published its Business Review for the First Quarter 2007 on 20 March. In the article "Trade deficits aren't as bad as you think," George Alessandria offers an alternative view to the mainstream: Trade deficits have benefits.

Although the amount of U.S. imports and exports has varied greatly over time, in recent years, the U.S. has been running trade deficits. Some people react to such trade deficits with doom and gloom; others cite them as evidence that

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