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Tag: Bitesize; current account

Bitesize: Trading your way out of debt

Simon Whitaker

Despite decades of trade deficits (spending more on foreign products than foreigners spend on UK products), the UK’s net liability with the rest of the world remains negligible.  How does it pull off that trick?  By earning a higher return on its foreign assets than it pays on its foreign liabilities.

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BankUnderground Currency, International Economics, Macroeconomics 1 Comment 17/11/201716/11/2017 1 Minute
Bank Underground is a blog for Bank of England staff to share views that challenge – or support – prevailing policy orthodoxies. The views expressed here are those of the authors, and are not necessarily those of the Bank of England or its policy committees.

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