Why Do Governments Prefer to Avoid Excessive Current Account Surpluses

question 11

Essay

Why do governments prefer to avoid excessive current account surpluses?
Or, why are growing domestic claims to foreign wealth ever a problem?

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Definitions:

Tadpoles

The aquatic larval stage of amphibians, especially frogs and toads, characterized by gills, a tail, and a later transition to the adult form.

Tunic

In a biological context, a fibrous or cellular covering layer, such as that surrounding certain seeds or the body of sea squirts and other invertebrates.

Adult Tunicates

Marine invertebrates that are members of the subphylum Tunicata; they are sessile as adults and have a sac-like body covered with a tunic.

Filter Feeders

Organisms that feed by straining suspended matter and food particles from water, typically using a specialized filtering structure.