The current account deficit
can be financed only through foreign inflows," Chidambaram said.
Even though it had to pay interest premiums and was running a current account deficit
, Italian central bank chief Mario Draghi (the leading contender to take over the ECB this autumn) kept his central bank's lending under tight control throughout the crisis.
It is unclear, however, whether the current account deficit
will continue to narrow because the trade deficit could remain high in light of the record-high price of imported crude oil.
Given the large current account deficit
, a substantial increase in private savings is one means to reduce this imbalance (Lansing, 2005).
The issuance of financial claims creates a net flow of foreign savings into the United States that, absent measurement error, exactly equals our current account deficit
The EPI economists conclude that bringing the current account deficit
into balance would require a 10-percent drop in America's GDP.
Counterbalancing the continued large current account deficit
in 1995 were a large recorded net inflow of capital and a large positive statistical discrepancy, which comprises some combination of unrecorded net capital flows and unrecorded net current account receipts.
The program for 1994-95 seeks an economic growth rate of 6 3/4 percent in 1995, a decline in the rate of inflation from some 70 percent in 1994 to just 20 percent in 1995, and a reduction in the current account deficit
from 5 percent of GDP in 1994 to about 4 percent of GDP in 1995.
The persistent US fiscal and current account deficits
have grown to unprecedented heights, reaching $480bn and $790bn respectively in 2005, causing genuine concerns that a readjustment of the imbalances to a sustainable figure will bring about a collapse of the dollar, triggering a recession in the US and by virtue of globalised trade links, a worldwide economic slump.
Turkey's Central Bank is expected to release data regarding the current account deficit
on Friday, Anadolu news agency reported.
According to eighteen economists who took part, Turkey's current account deficit
is predicted to be US $3.
Global Banking News-February 26, 2014--Central bank says Mexico's current account deficit