Barbados' Current Account Deficit Found Sustainable, Boosting Economic Stability.
The article looks at whether Barbados can sustain its current account deficit from 1960 to 2006. By using different techniques, the researchers found that Barbados is meeting its Intertemporal Budget Constraint. This means that the country's current account deficit is manageable, and any imbalances between exports and imports are corrected in the short term.