Correct. They don’t. It’s an illusion caused by where the accounting boundary is drawn.
That’s why “imbalances” never close.
If goods and services were exchanged for little models of the Eiffel Tower nobody would say there was an imbalance. Yet we do when we exchange for Euros.
That’s why “imbalances” never close.
If goods and services were exchanged for little models of the Eiffel Tower nobody would say there was an imbalance. Yet we do when we exchange for Euros.