Which regions of the world are borrowing and lending

Reference no: EM131133329

Retrieve the most recent World Economic Outlook (WEO) from the web site of the International Monetary Fund (www. imf.org). In the Statistical Appendix, find the table titled "Balances on Current Account," which lists current account balances around the world. Use the data for the most recent year available to answer parts (a) through (c).

a. Note the sum of current account balances around the world. As noted in the chapter, the sum of current account balances should equal zero. What does this sum actually equal? Why does this sum indicate some mismeasurement (i.e., if the sum were correct, what would it imply)?

b. Which regions of the world are borrowing and which are lending?

c. Compare the U.S. current account balance to the current account balances of the other advanced economies. Is the United States borrowing only from advanced economies?

d. The statistical tables in the WEO typically project data for two years into the future. Look at the projected data on current account balances. Do your answers to parts (b) and (c) seem likely to change in the near future?

Reference no: EM131133329

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