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Must total world net exports be zero?

That depends on your model of the world, and on how you define "goods and services". In a gold standard world, you essentially exchange goods and services with gold. Gold mining is therefore simply …
Chris tie's user avatar
  • 880
3 votes

How are trade deficits financed?

This can be visualized nicely by an example: Let’s say there are two islands in the world. And let’s just say island A only produces apples and island B only produces bananas. Also, the (real) exchan …
Chris tie's user avatar
  • 880