Rossini, Gianpaolo; Zanghieri, Paolo - In: Applied Economics 41 (2009) 5, pp. 677-683
If an economy runs a current account (CA) deficit and finances it via a corresponding net inflow of equity capital the external debt (ED) does not change, i.e. the CA deficit does not add to ED. This is no paradox. It simply comes from the definition of CA deficit and ED, and points to different...