Generally, what types of factors will cause a small open economy to run a large current account

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Generally, what types of factors will cause a small open economy to run a large current account deficit and thus borrow abroad? More specifically, what two major factors contributed to heavy LDC borrowing in the 1970s?

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Macroeconomics

ISBN: 978-0321675606

6th Canadian Edition

Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone

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Question Posted: Apr 01, 2016 03:48 AM

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Generally, what types of factors will cause a small open economy to run a large current account

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A small open economy is likely to run a large current account deficit and to borrow a...View the full answer

Macroeconomics

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