Imbalance in economic relationships among countries

During much of the 1980s, the macroeconomic policies of the USA were expansionary whilst those of Japan and European countries were contractionary. Low tax revenues and high public spending caused USA general and federal budget deficits and negative saving-investment balance reflected in the current account deficit. Japan and (the then) Germany FR followed more restrictive fiscal policies which led to current account surpluses. The outcomes were characterized by the USA federal budget deficit (associated with the current account deficit and high interest rates), the disproportionately low level of domestic demand in Japan and Germany, and the high level of current account surpluses maintained by the newly industrialized countries of east Asia.

1. Uncoordinated policy-making
2. Lack of international cooperation
3. International economic fragmentation

1. Unbridled economic competition in communist systems
2. Inadequate regional integration of countries
3. Imbalances in the distribution of the costs and benefits of economic integration
4. Imbalance in international trade patterns

1. Undemocratic local economic systems
2. Net outflow of capital from countries
3. International economic recession
4. International economic injustice
5. International differences in trading practices
6. High interest rates
7. Global economic stagnation
8. Fiscal and trade imbalances
9. Exchange rate volatility
10. Economic uncertainty
11. Consumer boycott of foreign goods

1. Uncoordinated global restructuring of production
2. Lack of economic adaptation of indigenous systems
3. Inadequate economic policy-making
4. Domination of economic integration by transnational corporations
5. Deficiencies in national statistics

1. Unequal global distribution of economic growth

1. Unbalancing economic relationships among countries
2. Studying economic reform
3. Promoting sustainable development through world trade agreements
4. Increasing international economic cooperation
5. Formulating domestic macroeconomic policies
6. Coordinating macroeconomic policies of governments

1. Uneconomic
2. Uncoordinated
3. Mismatch
4. Imbalance
5. Balance