Published Thursday, February 15, 2007 by Robert P. Murphy
Although Austro-libertarians have always been staunch supporters of free trade, Robert Murphy writes that many are worried over the unusually large current account deficits of recent decades. Even though they concede that a truly free market trade deficit would be perfectly benign, they believe that the current "global imbalances" in trade patterns largely reflect the behavior of central bankers, rather than voluntary exchanges between private individuals across the planet. Are they right?
(Original Text)
Trade Deficits and Fiat Currencies (2.28 MB)