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17 April 2025 / Article
The recently imposed set of tariffs, underpinned by the goal of eliminating US trade deficits, has the potential to upset the international financial system. In this article, we explain how to read current account and trade balances and why the risks and benefits of a deficit cannot be evaluated without first understanding how capital flows in a country.
The recently imposed set of tariffs, underpinned by the goal of eliminating US trade deficits, has the potential to upset the international financial system. In this article, we explain how to read current account and trade balances and why the risks and benefits of a deficit cannot be evaluated without first understanding how capital flows in a country.
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