Seth Ackerman wrote:
> >From the Financial Markets Center's latest Fed research roundup:
> http://www.fmcenter.org/pdf/roundup01Q1web.pdf
>
> In a San Francisco Fed Economic Letter, UC Davis
> professor Paul Bergin approvingly cites "standard
> economic theories" suggesting "that any current
> account deficit that arises exclusively from the actions
> of private agents in this context must be optimal in the
> sense that it is improving the welfare of people in the
> economy." However, "if government action rather
> than purely private behavior is the underlying cause of
> the current account deficit, the argument stated
> previously for not worrying would no longer apply."
--
Michael Perelman Economics Department California State University Chico, CA 95929
Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu