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ECN 500 Brooklyn College International Economics US EU Trade Balances Discussion


In Chapter 10 of International economics, Carbaugh asks, “Can the United States Continue to Run Current Account Deficits Indefinitely?” (p.349).

  • Apply the same concepts to the EU’s balance of payments.
  • Evaluate the sustainability of the EU’s current level of balance of payments.
  • Discuss the benefits the United States has, given this unique position in the world economy, that would not apply to the EU, that may allow the United States to safely run persistent external deficits.
  • Discuss the potential that persistent U.S. deficits in the current and payments accounts can be adjusted without bringing about economic recession or crisis.


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