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**Thifiadardivy** · 03-18-2007, 10:40 AM

Originally posted by KrazyHorse

Errr...that's not an explanation. It's a consequence... Well in open economy macro virtually all the major variables are endogenous if you look hard enough. So whilst your comment is not wrong, it is pretty unhelpful.

The original question was around how a country can import more than it exports. Lots of entertaining answers here (most partly right) but the key point to understand before you can get anywhere in analysing further is that the current account reflects one part of international transfers and in no way has to balance.

03-18-2007, 10:40 AM	#18
Thifiadardivy Join Date Nov 2005 Posts 552 Senior Member	Originally posted by KrazyHorse Errr...that's not an explanation. It's a consequence... Well in open economy macro virtually all the major variables are endogenous if you look hard enough. So whilst your comment is not wrong, it is pretty unhelpful. The original question was around how a country can import more than it exports. Lots of entertaining answers here (most partly right) but the key point to understand before you can get anywhere in analysing further is that the current account reflects one part of international transfers and in no way has to balance.
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