Everyone (almost) understands that a consistent deficit in trade undermines an economy and eventually a state.
Look at Greece.
But also look at the UK, France and the US, some of the world mature yet champions of trade deficits economies in the world. Can they consistently make up their trade deficits via borrowing no matter how attractive they try to be for foreign investors (look at eg the UK)?
But is exporting "beggar thy neighbour" after all? Are too export driven economies not that stable after all? Look at Germany and China for example.
It is about a dynamic balance after all?
This blog contains content I produced between 2000 and 2012. For my output as of 1/1/2013, go to the blog: http://nickpstrategy.blogspot.com
- Left and Right, but where is the Center?
- 2012 Review: US vs EU models (dreams vs quality of...
- 2013: What the times call for is for governments t...
- From my personal diary; Thinking is hard work
- Lobbying is so 20th century
- End of what?
- A serious fundamental flaw of the EU single market...
- The key to the EU and its single market
- Competitiveness: In search of balance?
- Euro Fringe
- Merkelian logics
- Scylla or Charybdis in modern economics
- 11 day (fin) virus
- Management and HRM: Chains, links and what's wrong...
- Decision making in 2012: Plan vs Strategy
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