When is a Current Account Deficit Bad? (English)

A current account deficit is sustainable when its underlying drivers support a smooth correction in the future. It is unsustainable when symptomatic of macroeconomic imbalances that would eventually trigger disruptive adjustments. Although a current account deficit in itself is neither good nor bad, it is likely to be unsustainable and lead to harmful consequences when it is persistently large, fuels consumption rather than investment, occurs alongside...

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Author

Devadas,Sharmila;

Loayza,Norman V.;
Document Date
2018/10/01
Document Type
Brief
Report Number
130415
Volume No
1
Total Volume(s)
1
Country
World,
Region
Other,
Disclosure Date
2018/10/02
Disclosure Status
Disclosed
Doc Name
When is a Current Account Deficit Bad?
Keywords
board of governors of the federal reserve system

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Devadas,Sharmila; Loayza,Norman V..

When is a Current Account Deficit Bad? (English). Research & Policy Briefs|no. 17 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/507731538487989157

When is a Current Account Deficit Bad? (English)

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