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Current account imbalances, such as between the US and the EU, serve a purpose. But it is possible to have too much of a good thing. The longer the imbalance stays large, the greater the likelihood of a reaction. That could come either from US or European politicians, or from markets.

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Focus – Current account imbalances

Current account imbalances, such as between the US and the EU, serve a purpose. But it is possible to have too much of a