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CURRENT ACCOUNT DEFICIT

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The relationship between UK current account deficit and EUR/GBP exchange rate

Stefano Fugazzi (ABC Economics) reports As noted in the July issue of ‘The World of ABC Economics’, Britain’s current account deficit (see Note) has been a cause of concern for many economists who have been trying to project the value of the pound. The graph below shows how the level of current account deficit in Britain is susceptible to … Continue reading

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