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  1. An Alternative approach to the imbalances is to start considering a macro equation for an open economy in terms of which imbalances on the current account are related to deficit and surplus savings or excess demand coupled with a shortfall in supply that are compensated via foreign trade. Two famous references are Summers. L (2004) The US Current Account Deficit and the Global Economy, Washington D.C.: Per Jacobsson Foundation. Bernanke, B.S. (2005) The Global Saving Glut and the US Current Account Deficit. www. ferealreserve.gov

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