1、A happy ending: the residents of the deficit country could work harder and more productively.
2、The residents of the deficit country spend less, leading to a drop in their deficit, and the residents of the surplus country spend more, leading to a drop in their surplus.
3、The currency of a surplus country will, all things being equal, rise in value, while that of a deficit country will sink.
4、Ultimately what drives trade conflict is when the trade surplus country cannot adjust quickly, while high unemployment in the trade deficit country creates impatience for rapid change.
5、Focusing exclusively on the imbalances as Krugman does, while ignoring why the United States became a deficit country, gives us a grossly incomplete understanding of what happened.
6、Thanks to its population growth and the dollar's role as a global currency, America has more fiscal room than any other big-deficit country.
7、Over time that reduces the deficit as the surplus country's exports get more expensive and the deficit country's exports get cheaper.
