Journal Article

A hitchhiker’s guide to the U.S. current account problem


Abstract: The United States has run a current account deficit for the past 20 years, and, as a consequence, foreigners now hold unprecedented financial claims on the United States. At some point, foreigners will become reluctant to hold these claims and will set into motion a series of corrective economic adjustments. This Economic Commentary describes the interaction between our current account deficits and the broader economy and explains the problem that continued deficits pose.

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Provider: Federal Reserve Bank of Cleveland

Part of Series: Economic Commentary

Publication Date: 2004

Issue: Oct

Order Number: 1