An article on bloomberg.com stated that not all currentaccount deficits are bad . . . [but] one

Question:

An article on bloomberg.com stated that “not all currentaccount deficits are bad . . . [but] one problem with persistent deficits is that foreign investors can end up owning a big share of assets, making a country’s stock and bond markets vulnerable to the whims of outsiders.” Briefly explain what a current account deficit has to do with foreign investors owning a big share of a country’s financial assets.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Economics

ISBN: 9781292430645

8th Global Edition

Authors: R. Glenn Hubbard, Anthony P. O'Brien

Question Posted: