About this videoDo current account deficits matter? This is the question that Antony Mueller analyzes in his lecture by using the examples of the United States, Europe, Japan, and Latin America to compare different account deficits. He talks about the United States, a country that has imported more goods than it has exported, which has caused its current account deficit to grow dramatically from $445 billion in 2000 to $500 billion in 2004. As well, he comments on the large amount of money that the European have accumulated in their reserves and that is no longer needed due to the shared currency and describes the Japanese surplus of $600 to $800 billion that is used for pension funds. Mueller shares his thesis in which he explains that the United States has experienced a high prosperity based on debt while Japan has stabilized its recession by manipulating the Yen and by inducing exports. Mueller’s analysis enriches the knowledge and awareness of the current economic situation worldwide. |
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CreditsDo Current Account Deficits Matter?
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