Filed In:
The Current Account
The Economics Glossary defines the Current Account as the difference between a country's savings and its investment. "[If the current account balance is] positive, it measures the portion of a country's saving invested abroad; if negative, the portion of domestic investment financed by foreigners' savings."
What is the Current Account?
An article explaining what the Current Account is, for newcomers to economics.
U.S. Current Account Deficit Last Big Bubble?
The article suggests that the current account deficit will not gradually improve over time, instead "the bubble will burst" overnight, having dramatic effects on the economy. This is because once the current account deficit grows too large "investors, fickle as they are, suddenly lose faith, turn tail and the currency and economy implode".