Explain the current account surplus

Reference no: EM131483582

Question: Ronald McKinnon, in the April 20, 2006, issue of the Wall Street Journal, noted, "China's saving is even higher than its own extraordinary high domestic investment of 40% of GDP. The result is that China (like many other countries in Asia) naturally runs an overall current account surplus." Why would this be true?

Reference no: EM131483582

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