Blanchard, Olivier; Giavazzi, Francesco; Sá, Filipa - C.E.P.R. Discussion Papers - 2005
There are two main forces behind the large US current account deficits. First, an increase in the US demand for foreign goods. Second, an increase in the foreign demand for US assets. Both forces have contributed to steadily increasing current account deficits since the mid-1990s. This increase...
