Unsustainable current account deficits could trigger financial crises in ASEAN-5 countries
The article examines how the current account behaves in ASEAN-5 countries. It looks at how people plan for the future when faced with economic shocks, finds that large deficits can lead to financial crises, and shows how budget deficits can affect interest rates and exchange rates. The study suggests that understanding these relationships can help countries maintain economic stability and sustainability.