One risk factor for speculative attack is a large current, Financial Management

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One risk factor for speculative attack is a large current

Question on speculative attacks in international finance,

One risk factor for speculative attack is a large current account decit, which can occur when the value of imports far exceeds the value of exports. Begin by dening the current account and the current account decit. Then, explain why, all else equal, a larger current account decit makes it harder to fend off a speculative attack.

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