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:

Technological Improvements

Advancements or enhancements in technology that lead to more efficient processes, better products, or improved ways of doing things.

Outward Shift

In economics, refers to the movement of a curve away from the origin in a graph, indicating an increase in quantity supplied or demanded due to various factors.

Production Possibility Frontier

A plot that displays the extreme production possibilities for two goods, based on an array of resources and additional factors.

Resources Efficiency

The optimal use of resources to achieve the desired outcome with minimal waste, maximizing the effectiveness of resource utilization.