Beet
Atlas Star
Posts: 28,914
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« on: August 16, 2014, 05:55:16 PM » |
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If there's one thing we've learned in the past 50 years of economic history, it's that developing countries run significant risks by engaging in either of the two following behaviors: 1) borrowing large amounts of money in a foreign currency, such as the U.S. dollar, particularly from foreign investors, and 2) running large and persistent current account deficits, particularly deficits funded by "hot money" inflows, as opposed to foreign direct investment. The article here says Ghana's current account deficit is over 12% of GDP, which is horrendous.
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