Trade deficits and the widening current account deficit

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At the moment, the market is completely ignoring things like record US trade deficits and the widening current account deficit. It is also largely ignoring the possibility of Federal Reserve rate cuts. Traders and investors are instead focusing only on the fiscal and monetary easing in Japan and monetary easing in Germany.

a. In what way is fiscal easing in Japan relevant here?

b. In what way is monetary easing in Germany relevant here?

Reference no: EM13838844

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