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U.S. Current Account Deficit Likely

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A U.S. economist told an annual symposium of some of the world’s most influential central bankers in Jackson Hole, Wyoming, on Saturday, the United States will likely continue to run a large current account deficit against other countries. This is because of its status as a global safe asset haven among other reasons.If they want to reduce external imbalances, University of Wisconsin, Madison, professor Menzie Chinn’s research also suggests lawmakers in the United States should look to domestic fiscal policy.A glut of savings in other countries historically has fueled capital flows into the United States. While global imbalances have shrunk back to pre-crisis levels such flows will continue to weigh on the nation’s current account balance. http://feeds.reuters.com/~r/reuters/t... http://www.wochit.com This video was produced by YT Wochit News using http://wochit.com

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