A country that persistently runs a current account surplus is living below its means while if it runs a persistent deficit it is living beyond its means Discuss?
A current account surplus signifies that the country is exporting more than importing or it is supplying more to the world than it takes from other countries. The current account surplus country is NOT consuming all its production, hence living below its means. On the other hand, a country running a persistent deficit in its current account is a net importer and paying more than it is producing, hence living beyond its means. Arun Goel
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