Blanchard, Olivier; Giavazzi, Francesco; Sa, Filipa - In: Brookings Papers on Economic Activity 36 (2005) 1, pp. 1-66
Two main forces lie behind the large U.S. current account deficits: an increase in U.S. demand for foreign goods and an increase in foreign demand for U.S. assets. Both have contributed to steadily increasing current account deficits since the mid-1990s, accompanied by a real dollar appreciation...
