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What Happens When the Current Account Deficit Unwinds? at 2006-07-09 19:42:58
Leaving aside for the moment the much trickier questions of when and how the US current account deficit will be unwound, what can we expect will happen to the US economy when foreigners become less willing to subsidize our domestic consumption? (if you can’t put it aside, see Brad Setser’s remarks at the Joint Economic Committee of Congress here and Nouriel Roubini’s PowerPoint presentation here
