So, how will the European Union distinguish between good current account deficits a government creates a favorable business climate, generating inflows of foreign direct investment and bad current account deficits?

So, how will the European Union distinguish between good current account deficits a government creates a favorable business climate, generating inflows of foreign direct investment 160 and bad current account deficits?

Ukraine s international reserves are a reassuring 26 billion, roughly one quarter of the country s GDP.

The current account deficit has been almost eliminated, and the banking crisis contained.

The ever rising current account deficit (6.8 of GDP in 2010) will require a second round of reforms.

Doesn t the country s persistent current account deficit reflect excessive consumption, rather than weak effective demand?

In the last 60 years, the US has underpinned global growth by running persistent current account deficits.

After all, America s still large current account deficit guarantees that the dollar will continue to fall.

For starters, Latvia, like the other Baltic states, was running an enormous current account deficit when the crisis started.

Since 2007, the US current account deficit has narrowed, but not because of a higher savings rate.

Though overall economic activity is weak, the current account deficit has reached a 12 year high of 3.5 of GDP.

The large gap between US and foreign long term interest rates that should emerge from and signal expectations of a falling dollar does not exist.

And the 65 billion needed every month to fund the US current account deficit continues to flow in.

After all, its GDP fell much less, although it ran similarly large current account deficits before the crisis and ran much larger fiscal deficits for longer.

Moreover, the peripheral countries large current account deficits, fueled as they were by excessive consumption, were accompanied by economic stagnation and loss of competitiveness.

France s current account deficit has risen to more than 2 of GDP, even as its economic growth has ground to a halt.

Countries that were overspending, under saving, and running current account deficits have been forced by markets to spend less and save more.

Demand adjustments in large current account imbalances?

Growth momentum has fizzled and, with inflation persistently high, Indian producers are struggling to compete in world markets. The current account deficit is increasing relentlessly, owing to a widening trade deficit (now at 13 of GDP), raising the danger of a balance of payments crisis.

The current account deficit is increasing relentlessly, owing to a widening trade deficit (now at 13 of GDP), raising the danger of a balance of payments crisis.

In the absence of a generalized appreciation of all Asian currencies and unchanged American policies, possibly only a deep recession could reduce the overall US current account deficit.

It then cites global current account imbalances, particularly the US external deficit, describing it as unprecedented for a reserve currency country to have a current account deficit of such magnitude.

The turmoil has led to a gradual rebalancing, with the US current account deficit beginning to narrow and emerging markets taking steps to boost domestic demand.

In the past, this pattern has always ultimately led to a correction, with America s growing current account deficit eventually bringing about a dollar depreciation.

Australia's current account is about 2.6 of GDP negative Australia has had persistently large current account deficits for more than 50 years.

Aid levels are comparable to GDP, with donors covering roughly two thirds of government expenditure and the entire current account deficit, which amounts to 40 of GDP.

In 2007, the United States had a savings rate of 14.6 of GDP, but an investment rate of 19.6 , generating a current account deficit.

So it is not surprising that, despite its large devaluation, Iceland continues to run a high current account deficit, adding to its already large foreign debt.

The United States trade and current account deficits have begun to shrink relative to American and world GDP.

Thus, in order to keep the current account deficit stable, the trade deficit must shrink. And the only way for the trade deficit to shrink substantially is for net imports to fall, which requires either a relatively sharp decline in the value of the dollar, thereby raising import prices, or a depression in the US.

Twin current account and fiscal deficits (and or currency and debt maturity mismatches) were the rule.

Thus, in order to keep the current account deficit stable, the trade deficit must shrink.

The IMF worried a great deal about what would happen when this chain broke and the eventual break was, of course, more a matter of arithmetic than economics. The US current account deficit can persist above roughly 3 of GDP only if unrealistic assumptions are made about the share of US assets that the rest of the world is willing to hold.

In that case, it seems curious that, as the crisis continues, the safe haven for global investors is the United States, which has had an enormous current account deficit for years.

The US current account deficit can persist above roughly 3 of GDP only if unrealistic assumptions are made about the share of US assets that the rest of the world is willing to hold.

Indeed, countries from Singapore to Russia are running large surpluses.

The US current account deficit has been the most widely discussed indicator of global imbalances.

It took the financial crisis to put the brakes on US borrowing train America s current account deficit has now shrunk to just 3 of its annual income, compared to nearly 7 a few years ago.

From 2000 to 2007, the US ran a cumulative current account deficit of roughly 5.5 trillion, with nearly symmetrical offsetting increases in reserves in China and Japan.

As the national saving rate has come down, so has the current account surplus.

The Committee has no objection to the proposed construction in progress account.

Until this happens, it is in the rest of the world's interest to let the US continue to run an unprecedented current account deficit by financing it at the rate of 500 billion per year.

In addition to securing energy supplies, the deal would help Turkey to overcome its chronic current account deficit roughly 70 of the country s 84 billion trade deficit is due to the import bill for energy supplies.

In the run up to the financial crisis, the US external deficit was soaking up almost 70 of the excess funds saved by China, Japan, Germany, Russia, Saudi Arabia, and all the countries with current account surpluses combined.

Given China s massive current account surplus (12 of GDP), the renminbi is still undervalued.