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What is the deeper relationship between trade deficits and (federal) budget deficits? The explanations Noah gives could almost exactly be applied to budgetary d
by rich_sasha 2y ago
What is the deeper relationship between trade deficits and (federal) budget deficits? The explanations Noah gives could almost exactly be applied to budgetary deficits - its all Klarna.
If you run a trade deficit, does that also mean you necessarily have a budgetary deficit? Can you have a balanced budget and a trade deficit - and if you can, do you still care about the trade deficit?
Do you care about trade deficits with individual countries or blocks, if you're balanced overall?
- bryanlarsen 2y ago> If you run a trade deficit, does that also mean you necessarily have a budgetary deficit? To balance a trade deficit you need a surplus elsewhere. It'd be nice if that was a budgetary surplus, but it's a capital accounts surplus, better explained in the article.