A capital flow bonanza must be defined country-specifically—it is a current account deficit that is particularly large relative to a country's own historical standard, not merely the existence of a deficit; thus England as reserve currency could run large deficits for over a century without it counting as a bonanza by British standards.

definitionpending

Speaker

Carmen Reinhart

Evidence Quote

it's not just a current account deficit per se but it's a current account deficit that's big by your own standards

Source

Carmen Reinhart on Financial Crises 11/23/2009EconTalk
Created: 6/15/2026, 9:20:19 AM

My Notes

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