This assignment has several objectives. The first is to gain experience reading and interpreting serious economic analysis. The second is to reinforce your understanding of the connections between a country’s current account, international financial flows, and its net international investment position. The third objective is to provide an opportunity to identify, locate, present, and interpret relevant economic data. The final objective is to improve your ability to clearly and logically write about a concept in economics.
Read Perspectives on the U.S. Current Account Deficit and Sustainability by Catherine Mann. This article was published in 2002, when the net international investment position for the U.S. was approximately -20% of U.S. GDP. In her article, Mann discusses several ways of looking at the current account and international investment position. Write an essay that summarizes one (and only one) of Mann’s perspectives on the current account and international investment. After summarizing her arguments, provide some updated data (in either the form of a table and/or graph) and discuss your chosen perspective based on the updated data.
You must include at least one table or graph, but no more than three in total. Be sure to specify the source of your data (for example, see how Mann cites the source of her data under each of her graphs and tables). Number your graphs or tables (e.g., Table 1, or Figure 1).
You must explicitly discuss the graphs or tables in the written text, referring to each by number (e.g., “Figure 1 shows that…”).
You need not fully understand every word in the Mann article, but you should work very hard to fully understand the part that you are trying to summarize and update with current data.
You should not simply string together a bunch of quotes from Mann’s article, but should work hard to explain her arguments in your own words. If you do quoiqute her, be sure to use quotation marks.