Option #1: US Deficits
In Chapter 10 of International Economics, Carbaugh (2011) asks, “Can the United States continue to run current account deficits indefinitely?” (p. 361) Apply the same concepts to the EU’s balance of payments. At its current levels, is it sustainable in the long term? Does the United States’ unique position in the world economy allow the country to safely run persistent external deficits? Can persistent U.S. deficits and payments accounts be adjusted without bringing about an economic recession or crisis?
Your paper should be 4-6 pages in length, not including the title or reference pages, and conform to CSU-Global Guide to Writing and APA (Links to an external site.).
Include at least four academic peer-reviewed journal articles as references. The CSU-Global Library is a good place to find these references.
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