Sustainable balance of trade deficits
分析一个包含两种货币的代际交叠模型，证明一国可以维持现值接近其贸易伙伴全部资源流的贸易逆差，且世界经济的均衡满足跨期效率标准。
This paper analyzes a model of overlapping generations in which there are two currencies. There are two agents born in each period, and these agents have completely heterogeneous preferences and endowments. The paper shows that there are monetary equilibria in which one country can sustain a trade deficit whose present value is arbitrarily close to that of its trading partner's entire stream of resources. Hence, there may be no limit to the present value of a country's trade deficit, even if the equilibrium for the world economy satisfies an intertemporal efficiency criterion.