"The result of the high current-account deficit has been the depreciation of the rupee, " he said.
Its current-account surplus has narrowed largely because of an increase in domestic investment, not consumption.
These transfer payments flattered America's current-account balance in 1991 and so helped to lift the dollar.
Instead, many of Europe's weaker economies failed to reform and Germany accumulated gratifyingly large current-account surpluses.
Even where troubled euro-zone countries had not been profligate, they have been running unsustainable current-account deficits.
Countries such as Turkey and Hungary have large current-account deficits that would make fiscal expansions risky.
Investors are too complacent about inflation and about America's enormous budget and current-account imbalances.
High commodity prices have given Brazil a large current-account surplus for the past few years.
But high inflation and a wide current-account deficit present obstacles to any such moves.
Many American economists and policymakers have long argued that the current-account deficit does not matter.
Explicit current-account targets have their shortcomings, not least that policymakers can influence them only indirectly.
It expects China's current-account surplus to double in dollar terms between 2010 and 2014.
Current-account deficits and infrastructure bottlenecks won't go away so soon in Thailand, Indonesia and Malaysia.
You can still have full-employment current-account balance because we will give you transfers instead.
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The current-account deficit is no more than the accounting counterpart of that net inflow of capital.
All of which should help increase the trade surplus and further reduce the current-account deficit.
It is in good shape, with inflation at 9% and the current-account deficit improving.
Russia faces its first-ever current-account deficit, and much of its industry is in terrible shape.
However, big current-account deficits there and in other east European countries remain a worry.
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Inviting more foreigners to invest in India would help sentiment and plug the current-account hole.
America's current-account deficit is big and growing, and this is a legitimate cause for concern.
Notably, it had a large current-account deficit and a foreign-debt burden that was rising fast.
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At some point, foreign investors will no longer be prepared to finance America's current-account hole.
The current-account deficit is more worrying because it suggests that competitiveness is steadily eroding.
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Such developments will make it harder for America to finance its huge current-account deficit.
Then, excess demand resulted in higher inflation, huge current-account deficits and rampant asset-price inflation.
The current-account deficit, now around 5% of GDP, has reached levels which alarm some economists.
Partly because of privatisation, foreign direct investment should finance perhaps 60% of the current-account deficit.
It was the dollar that was losing support, as swing voters fretted about America's current-account deficit.
When investors flocked to Asia earlier this decade, stockmarkets surged and current-account deficits ballooned.
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