International Economy

    During the 1980s, the U.S experienced “twin deficits” in the Current Account and Federal Budget. Since 1998 the U.S Current Account deficit has grown steadily along with rising government budget deficits. Do Government Budget Deficits lead to Current Account Deficits? Identify other possible sources of the current account deficits. Do current account deficits necessarily indicate problems to the U.S economy?