Unbalanced current accounts could signal economic troubles, requiring targeted action.
The article discusses how current account deficits and foreign liabilities can signal economic problems. While these deficits can show issues in the economy, they are not perfect indicators and can be misunderstood. The paper suggests that focusing on internal balance could help stabilize current account balances. However, there is no strong reason to use macroeconomic policies to target the current account directly. Instead, specific problems could be addressed through microeconomic actions.