Definition
A country's trade, income, and transfer balance with the world.
Why it’s relevant today
Large external imbalances can influence currencies and funding needs.
Why it matters
It shows whether an economy is a net lender or borrower abroad.
A country's trade, income, and transfer balance with the world.
Large external imbalances can influence currencies and funding needs.
It shows whether an economy is a net lender or borrower abroad.
Discussion
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