Given output, a country can improve its current account by cutting either investment or consumption (private or

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Given output, a country can improve its current account by cutting either investment or consumption (private or government). After the debt crisis of the 1980s began, many developing countries achieved improvements in their current accounts by cutting investment. Was this a sensible strategy?
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International Finance Theory and Policy

ISBN: 978-0133423648

10th edition

Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz

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