Bond Outlook [by bridport & cie, November 16th 2005]
How can a country whose external current account deficit keeps growing have a strong currency? It is only a couple of years since USD 45bln per month seemed unsustainable, and the dollar had to weaken. The dollar did indeed fall, but since then the deficit has widened to a regular USD 60 bln per month. Does this imply that the USA cannot balance its current account just by a weaker dollar? Probably, yes. |
Access intelligence that drives action
To unlock this research, enter your email to log in or enquire about access
