Professor Raúl Razo-Garcia Quoted in the Globe and Mail

Professor Raúl Razo-Garcia was quoted in the Globe and Mail’s piece titled “Do trade deficits matter? How economists think about Trump’s obsession.” Professor Razo-Garcia provides examples of countries with trade deficits and trade surpluses.

Here is the quote:

“You have an economy like China with a trade surplus because in the Chinese economy national savings are so high relative to investment that they have all this excess of savings that they are not absorbing in the economy and they are willing to lend it to the rest of the world,”

“On the opposite side we have the U.S. economy with a trade deficit, because the national savings rate in the U.S. is low relative to investment. In some way what they are doing is they’re consuming more than they are producing.”

The full article, written by Mark Rendell, can be read on the Globe and Mail’s website here.