Social Sciences and History / Unit 15 SSH 1402 short lesson, about 20 seconds
A Deficit Is a Capital Inflow
Captions available
The idea
A trade deficit means a net inflow of financial capital from abroad; a surplus a net outflow. A current account deficit makes a country a net borrower from the world; a surplus a net lender.
In practice
Deficits since the early eighties, larger from the late nineties.
Where people slip
The summary's early-eighties surpluses are an error; the text says deficits.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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