its related to Economics-Macroeconomics and macroeconomics
2006-08-06 22:53:02 · 4 answers · asked by tribal_ripgurl 1 in Politics & Government ➔ Government
A current account deficit means you are importing more than you export (aka you're sending more money overseas than you're earning).
So yes, it is an issue.
I assume you're talking about the United States here. On a whole, I believe the U.S economy is slightly shaky, but will travel ok. It's not like the U.S will go bankrupt or anything - the economy is way too big for that.
2006-08-06 22:57:24 · answer #1 · answered by ◄ Mal ► 3 · 0⤊ 0⤋
Not really, provided that it is not over a certain percentage of GDP. No one really knows how much of a percentage but say 10% or such that the government would be forced to raise taxes and stump economic growth.
Or, you can do it like Alan Greenspan did and just print money like it is going out of style.
Either way, not a problem...yet.
2006-08-07 05:58:36 · answer #2 · answered by Anonymous · 0⤊ 0⤋
A persistent current account deficit will make the economy in danger because other countries will not transact business and investors will not come in.
2006-08-07 06:01:25 · answer #3 · answered by FRAGINAL, JTM 7 · 0⤊ 0⤋
Yes
2006-08-07 06:55:38 · answer #4 · answered by rhymingron 6 · 0⤊ 0⤋