
There Is No Optimal Policy (guest: Cameron Crise)
The Market Huddle
00:00
Runs a Current Account Deficit?
A country that runs a trade deficit will tend to see its currency depreciate. A in practice, the world's a lot more complicated than that. Ah, certainly the usa has run a chronic current account deficit. A, and, but it's hard to know.Ah, wer which is the chicken and which is the egg? As the world's reserve currency, there's tremendous demand globally for us. Assets, us, financial assets. And so if the rest of the world throws money at the us, asentially to buy treasuries and other financial assets, and the us. Runs a capital account surplus, and kind of by definition, they need to run a
Play episode from 15:53
Transcript


