United States Current Account Deficit and Capital Flows
M Halim Dalgin

Abstract
Before the financial crisis the US current account deficit was hovering around 6 per cent of the US GDP. Questions about the sustainability of the current account deficit of this magnitude or its causes were raised but now mostly these worries are pushed back both as a result of slower growth of the US economy and as a result of more urgent issues. Yet, the special position of the dollar and free capital flows among the countries bound to bring back the issues that come with the current account deficit.

Full Text: PDF