a nation cannot run a current account deficit unless someone wants to hold its IOUs. We can even view the current account deficit as resulting from a rest-of-the-world desire to accumulate net savings in the form of claims on the country. Certainly for the US Dollar that would be an appropriate way to look at it. The rest of the world (ROW) wants to accumulate Dollar assets, so exports to the United States.
New way to look at deficit.a nation cannot run a current account deficit unless someone wants to hold its IOUs.
