Abstract for:Drawing Insights from a Small Model and Statistical Data of the US Economy

Abstract 

There are two major issues of the US economy: increasing public and private debt, and increasing current account deficit. Presenting a small model of the dynamics of economic growth, foreign trading and indebtedness, this paper attempts to draw more insights into the US economy and to discuss how to reduce the level of public and household debt and to develop the economy in a more inclusive and sustainable way. Statistical data of the US economy are used to parameterize the model. Several scenarios including one introducing a border adjustment tax are simulated.

Keywords: inclusive growth, indebtedness, foreign trade, statistical data