Can you think of reasons why a government might be concerned about a large current account deficit

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Can you think of reasons why a government might be concerned about a large current account deficit or surplus? Why might a government be concerned about its official settlements balance (that is, its balance of payments)?

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International Economics Theory and Policy

ISBN: 978-0273754206

9th Edition

Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz

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Question Posted: Oct 24, 2012 11:42 PM

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Can you think of reasons why a government might be concerned about a large current account deficit

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A current account deficit or surplus is a situation which may be unsustainable in the long run There ...View the full answer

International Economics Theory and Policy

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