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    Should a country run an account surplus or deficit?

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    Is a country better off running a current account surplus rather than a current account deficit?

    © BrainMass Inc. brainmass.com October 10, 2019, 4:41 am ad1c9bdddf
    https://brainmass.com/economics/economic-indicators/should-country-run-account-surplus-deficit-472437

    Solution Preview

    The account balance of a country is an indicator of the country's current financial health. It is true that in general, large account deficits are not a good situation. This can be seen when analyzing the financial health of the U.S.. The U.S. has an extremely large current account deficit, due to the amount of debt that has been incurred over the years. The U.S. is now the world's largest debtor and runs a ...

    Solution Summary

    The solution discusses if a country is better off running a current account surplus rather than a current account deficit.

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