Economics, Econometrics and Finance
4 years ago

Warning: U.S. Current Account Deficit Unsustainability Could Trigger Global Economic Crisis

SSRN Electronic Journal
How Long Can the Unsustainable U.S. Current Account Deficit Be Sustained?
Carol C. Bertaut, Steven B. Kamin, Charles R. Thomas

Paper Summary

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The article explores how long the U.S. can sustain its current account deficit. It asks if the deficit can last in the long run, how quickly debt levels could lead to investor concerns, and how asset prices and the deficit might react.