Michael Pettis on the mechanics and politics of trade
FT Alphachat
00:00
The Spanish Current Account Balance in the 1990s
In the 1990s, Spain's current account balance was like negative 1% of GDP. The eve of the crisis, it was something on the order of negative 10%. It wasn't fundamentally a case of nefarious local governments and businesses abusing the rules. And if you have that much money coming in, what are you supposed to do with it?
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