ALSO OF INTEREST

"I have already made use of some of [their] findings."

Mickey Kantor
US Trade Representative

"Highly recommended to policymakers and graduate students."

Choice

"... a balanced strategy for the two governments to manage the relationship."

Richard N. Cooper
Foreign Affairs

"An excellent, balanced compendium ... no other study of the subject provides such a comprehensive survey of macro, structural and sectoral issues, and brings together so many different branches of the literature."

Peter A. Petri
Brandeis University

"Those interested in understanding the most important bilateral economic relationship in the world today will be hard pressed to find a more reasoned and clear analysis than that provided by Fred Bergsten and Marcus Noland."

Richard Grant
Royal Institute of International Affairs

United States-Japan economic conflict has four major dimensions: the large global trade imbalances of the two countries, structural differences between them, a large number of sectoral disputes, and their joint responsibility for global prosperity and stability. Two leading experts on United States-Japan economic relations examine the macroeconomic and microeconomic causes of these frictions and assess possible policy responses, including several variants of "managed trade." They stress the differences between the American and Japanese models of capitalism and provide detailed examinations of current conflicts over key industries including automobiles, computers and supercomputers, construction contracting, financial services, and semiconductors.The authors conclude that Japan and the United States are on a collision course. They propose a comprehensive new strategy to resolve the conflict that calls for major changes in macroeconomic, structural, trade, and international economic policies in both countries.