This paper presents the views of Lawrence H. Summers on the U.S. current account deficit and the global economy … rate, in the range of 5.5 percent of GDP. It represents more than 1 percent of global GDP and absorbs close to two …-thirds of the cumulative current account surpluses of all the world’s surplus countries. Summers thinks that such a unique …

This paper examines external adjustment in the U.S., Japan and Germany from the perspective of net foreign asset … each of the G-3 countries, it is a function of demographic variables and public debt. Second, deviations from the long …-run equilibrium give rise to disequilibrium feedback through domestic absorption and through other channels …