Causes of current account deficits

United States has experienced constant current account deficits since early 1980s. List some of the major causes of the deficits? What could be the consequences of these constant U.S. current account deficits?

E

Expert

Verified

Current account deficits of the U.S. have reflected a few reasons for example:

a) Historically high rate of real interest in the U.S. that is the result of ballooning federal budget deficits, which has kept dollar strong, and 

b) Weak competitiveness of U.S. industries.

   Related Questions in Financial Accounting

  • Q : Article on Supplier selection Write an

    Write an article why Supplier selection has been a critical decision to be made for any company?

  • Q : Describe the term Operating Expenses

    Describe the term Operating Expenses in business accountancy?

  • Q : Monetary approach to determine exchange

    Derive and explain monetary approach in order to determine the exchange rate.

  • Q : Case study of an Operational-Strategy

    Develop a case study of the Operational-Strategy interface as it applies to organisational change (last 3-5 years) within your organisation, together with a project implementation case study .You are required to detail the operational chan

  • Q : Workings and nature of the financial

    Assume that you are really interested in investing in the shares of Nokia Corporation of Finland that is a world leader in the wireless communication. However, before making the investment decision, you might like to learn about company. Take a look of the website of

  • Q : Appropriated retained earnings The

    The portion of retained earning that is not available for dividends. To appropriate retained earnings, the company must record the partitioning of retained earnings. The company can use appropriated retained earnings for contingencies or big projects. Appropriating retained earning does not invol

  • Q : Review the accounting cycle the

    Assignment: The purpose of this assignment is to review the accounting cycle--the procedures that businesses normally use to record transactions during the year and prepare financial statements at the end of the year.  The accounting cycle is discussed in Chapter 3 of your textbook. &nb

  • Q : Stages in the life cycle of a family

    There are seven typical stages in the life cycle of a family with children. Fully explain and give an example to describe each of those seven stages.

  • Q : Sale return or return inward Describe

    Describe Sale return or return inward in brief.

  • Q : Explain Control of Cash Explain Control

    Explain Control of Cash. Illustrate briefly.

©TutorsGlobe All rights reserved 2022-2023.