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by TheTaytay
405 days ago
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This is one of the first paragraphs: > Where a trade deficit does become a problem is when 1) it’s persistent and 2) it’s mainly going toward overconsumption or malinvestment. When both of these conditions are met, the trade deficit is likely to result in significant imbalances, and risks an eventual currency crisis or other economic problem that forces the trade imbalance closed. It is stated in the tone of “as every 3rd grader knows…” but I don’t believe this is a “mainstream” economic position these days, is it? |
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