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Categories: Macroeconomics International economics All articles with unsourced statements Articles with unsourced statements since April 2008 |
Summary Of: Current accountCurrent Account Balance 2006 as percentage of GDP... Current Account Balance 2006 as percentage of GDP... Current Account Balance 2006 as percentage of GDP... The current account balance is one of two major metrics of the nature of a country... A current account surplus increases a country... and a current account deficit does the reverse... It is called the current account because goods and services are generally consumed in the current period... a current account surplus is usually associated with positive net exports... Thus the current account can be written as X... the current account X should increase if... Action to reduce a substantial current account deficit usually involves increasing exports or decreasing imports... obvious but more effective methods to reduce a current account deficit include measures that increase domestic savings... It should be noted that a current account deficit is not always a problem... states that a current account deficit does not matter if it is driven by the private sector... A deficit in the current account also implies that the country is a net capital importer... the current account is the mirror image of the sum of the capital and financial accounts... Is the current account driven by the capital and financial accounts or is it vice versa... The traditional response is that the current account is the main causal factor... current account deficit is driven by the desire of international investors to acquire U... undoubtedly remains that the causative factor is the current account and that the positive financial account reflects the need to finance the country... Current account balance and population...Encyclodia Page On: Current account |
