Every country's internal (domestic) imbalance must always be perfectly consistent with its external (trade) imbalance, expressed as: current account surplus equals excess of savings over investment; and conversely, one country's external surplus must be matched by another's deficit.
definitionpending
Speaker
Michael PettisEvidence Quote
“every country's internal imbalance must always be perfectly consistent with its external imbalance...I can't run a surplus unless you run a deficit”
Source
Michael Pettis: China’s Consumption Crisis Is The World’s Crisis— The Monetary Matters NetworkCreated: 8/11/2026, 7:43:21 AM
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