A balanced current account is a key objective for economic stability. Persistent imbalances, such as deficits or surpluses, can disrupt trade, increase debt, and affect economic growth. This guide explores government objectives for current account stability and the role of fiscal, monetary, supply-side, and protectionist policies in addressing current account imbalances, with real-world examples and insights into their effectiveness. Government Policy Objective: Stability of

Learn the current-account components and formula, how deficits and surpluses arise, their consequences and policies for correcting persistent imbalances.