Slimebeast on 11 April 2009
| SamuelRSmith said: The current account deficit is essentially imports minus exports of an economy. This is because, in theory, the imports are paid off by the money made from the exports. If the number of imports is greater than the number of exports, then money must be borrowed from other countries to pay for it.* |
No. U can pay for the goods u import with money from within your own country. Else u would be presenting a mathematical impossibility, because some countries simply are destined to always import more than they export (and vice versa, countries like Korea, Japan and Chine will always be net exporters, at least during our lifetime) - cause u dont mean they will be forever in debt, do u?
