Friday, March 28, 2014
Living beyond our means (and buying tat)
Sky says, "The current account balance is one of those economic numbers that tends to linger in the backdrop these days. In the era of the Gold Standard and Bretton Woods system, when a countryÃ¢Â€Â™s economic policy was largely determined by its balance with the rest of the world, this measure of oneÃ¢Â€Â™s international ledger was all-important. These days, other numbers - GDP, inflation, unemployment Ã¢Â€Â“ tend to hog the headlines. But, the current account matters! It is the comprehensive measure of how much a country is sucking in from overseas". "According to IMF figures, BritainÃ¢Â€Â™s current account deficit for 2013 as a whole (4.4% of GDP) was greater than in any other developed economy (including Greece, Cyprus etc)". Maybe our only recovery is in retail spending on German cars & tat?