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What determines whether a country runs a surplus or a deficit? The factors are interrelated. As a country’s currency appreciates, its goods become more expensive abroad and foreign goods become cheaper at home, incentivizing more imports and fewer exports, and thus pushing the current account toward deficit. Depreciation has the opposite effect.
~ Michael Starr via American Affairs

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The British stumbled upon an unexpectedly powerful idea: Sever the symbolism of the state from the political power of the state, and bestow those two different governing roles on two different people. Power has little majesty in the British system. Prime ministers reside in an apartment over their office. People are rude to them all the time.
~ David Frum via The Atlantic

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The current account balance represents how much a country’s economy earns from or pays to the rest of the world in a given year. A current account deficit means a country pays foreigners more than it earns from them, making it a net debtor. A surplus means the opposite. For most countries, including the United States, the dominant component of the current account is the trade balance: the difference between imports and exports of goods and services.
~ Michael Starr via American Affairs

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