Running a current account deficit does not necessarily mean increasing indebtedness to the rest of the world, because if foreigners buy American equity, corporate debt, or make foreign direct investment financing real productivity, factories, and projects, that is fundamentally different from a government borrowing to live beyond its means.

causalpending

Speaker

Russ Roberts

Evidence Quote

is it really the case that a current account surplus means that the American economy is increasingly in debt to the rest of the world

Source

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

My Notes

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