why capital . . .

Seth Ackerman SAckerman at FAIR.org
Tue Mar 9 09:21:33 PST 1999


So theoretically the exchange rate adjusts to keep the two in balance? I'm just trying to understand why the conventional wisdom says the current account gap will one day push down the dollar.

Nice F. Scott stamps, by the way.

[Seth Ackerman]

> In theory they're supposed to match. In practice they don't. The
> difference
> (just as with the production and income sides of the national income &
> product accounts) is called the statistical discrepancy. Most of the
> time
> it's tiny; lately, both discrepancies have been huge.
> Doug

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