The current account deficit measures U.S. trade in terms of goods and services and of income and transfer payments. Beginning in the 1990s, and at a quickening pace since 2001, this deficit has risen from roughly zero to over six
percent of the United States' gross domestic product. At the same time, Asian and oil-exporting countries accumulated equally spectacular surpluses. How did this imbalance come about-and why so drastically? In this book, economists Anton Brender and Florence Pisani dissect the mechanisms that led to the formation of global imbalances and enabled the savings generated in one place on the planet to be used in another.
Anton Brender is associate professor at Paris-Dauphine University. Florence Pisani teaches at Paris-Dauphine University. Both are also economists with Dexia Asset Management.