https://padlet.com/rachna_shukla15/q3hd10f64suj Made with the strength to succeed en-us 2018-01-03 09:19:23 UTC 2018-01-06 06:33:22 UTC hello@padlet.com rachna_shukla15 https://padlet.com/rachna_shukla15/q3hd10f64suj/wish/218442532 2018-01-03 09:20:15 UTC https://padlet.com/rachna_shukla15/q3hd10f64suj/wish/218442532 https://padlet.com/rachna_shukla15/q3hd10f64suj/wish/218446597 Even though countries may be running a deficit, it is not a major cause of concern, because cyclical causes can correct themselves based on the behaviour of the economy. More so than that, surpluses can be a major cause of concern to the international economy simple because one country running a persistent surplus does so at the cost of another country. The trade wars that take place causes problems between economies and lead to further deep rooted deficits for some countries.]]> 2018-01-03 09:52:56 UTC https://padlet.com/rachna_shukla15/q3hd10f64suj/wish/218446597 https://padlet.com/rachna_shukla15/q3hd10f64suj/wish/218446611 Current account surpluses can be problematic because they prevent other nations from building a competitive export sector, however, it forces the exporting country to consume goods and services at a point inside it’s production possibility curve. Current account deficits which are prolonged can cause depreciation and be a source of imported inflation, but they enable a country to consume at a point outside its PPC. ]]> 2018-01-03 09:53:03 UTC https://padlet.com/rachna_shukla15/q3hd10f64suj/wish/218446611 https://padlet.com/rachna_shukla15/q3hd10f64suj/wish/218447093 We learnt the cyclical and structural nature of current account surpluses and deficits and also learnt about current account surpluses and deficits causing appreciations and depreciations in the exchange rate. 

]]> 2018-01-03 09:54:11 UTC https://padlet.com/rachna_shukla15/q3hd10f64suj/wish/218447093 https://padlet.com/rachna_shukla15/q3hd10f64suj/wish/218447186 A current ac deficit is not a problematic for any economy because a trade deficit means that a country must rely on foreign direct investment or borrow money.

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