Blanchard, Olivier; Milesi-Ferretti, Gian Maria - In: IMF Economic Review 60 (2012) 1, pp. 139-150
The purpose of this note is to discuss two complex issues. First, why might a country want to reduce its current account deficit or surplus? And second, why might the international community ask for more? We argue that, in many cases, current account balances reflect underlying domestic...