Why Still Worry About the Capital Account Surplus?
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Author(s)
Makin, Tony
Griffith University Author(s)
Year published
2005
Metadata
Show full item recordAbstract
External imbalances should not be considered worrisome, in and of themselves. On the contrary, since capital inflow or foreign saving complements domestic savings, it plays an important role in the process of domestic capital accumulation enabling faster economic growth. Meanwhile, the national income of creditor countries also rises to the extent that international lenders earn higher returns on their saving than possible in their own economies.External imbalances should not be considered worrisome, in and of themselves. On the contrary, since capital inflow or foreign saving complements domestic savings, it plays an important role in the process of domestic capital accumulation enabling faster economic growth. Meanwhile, the national income of creditor countries also rises to the extent that international lenders earn higher returns on their saving than possible in their own economies.
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Journal Title
Policy
Volume
21
Issue
4
Publisher URI
Copyright Statement
© The Author(s) and the Centre for Independent Studies 2005. Please refer to the journal's website for access to the definitive, published version.
Subject
Applied Economics
Policy and Administration
Law