Such developments will make it harder for America to finance its huge current-account deficit.
Then, excess demand resulted in higher inflation, huge current-account deficits and rampant asset-price inflation.
For years economists have predicted that America's huge current-account deficit would eventually cause its currency to plunge.
But as fears about a double-dip recession subside, the country's huge current-account deficit has become the focus of attention.
It enjoys huge current-account and fiscal surpluses, and since 1999 the economy has grown by over 5% a year.
Turkey's huge current-account deficit makes it more vulnerable than many other emerging markets.
Meanwhile, huge current-account surpluses cannot be expected to offset capital outflows for ever.
Germany has a huge current-account surplus and so is not dependent on flighty foreign capital to keep its companies primed.
Thanks to huge current-account surpluses in China and the oil-exporters in the Gulf, emerging economies as a group still send capital to the rich world.
Yet the euro's external balance concealed a huge internal divide between places like Germany, with excess savings, and countries such as Spain and Greece, with huge current-account deficits.
Turkey isn't: it runs a huge current-account deficit.
ECONOMIST: Buttonwood: Emerging markets, emerging risks | The
Worse, many economists think the dollar is overvalued, and vulnerable, not least because of America's huge and growing current-account deficit.
Foreign-exchange traders seem to have discovered what everyone else already knew: that America's huge and growing current-account deficit is unsustainable, and that two things are required to correct it.
Already the export recovery, combined with a sharp cut in imports as domestic demand has slumped, has brought a huge improvement in some economies' current-account balances.
After all, short-term interest rates and inflation are both rising, the current-account deficit is huge and widening, the dollar has fallen and the fiscal outlook has worsened.
The current account is in surplus, but at some point a falling trade balance could send the current account into deficit, creating huge dangers and risk of macro financial market disruption.
Whichever numbers you choose, central banks' increases in dollar reserves have been large compared with overall foreign purchases of American bonds, and huge compared with the size of the current-account deficit.
Few other countries had the huge debts that made Hungary so wobbly, or the gaping current-account deficit that made Latvia so vulnerable.
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