The United States contain experienced continuous present account deficits since the early 1980s. What do you think are the foremost reason for the deficits? What would be the consequences of continuous U.S. present account deficits?
The present account deficits of U.S. might have reflected a few reasons such as
(I) a historically high real interest rate in the U.S. that is because of ballooning federal budget deficits, which kept the dollar strong, and
(ii) weak competitiveness of the U.S. industries.