Also trade deficits....they have fallen in UK recently..why?
1. recession means we are buying less imports
2. china is now buyiong more high value added stuff..which we are good at
therefire is it such a big issue...no
Remember, big macro issue is govt debt, unemployment & EU...it is not inflation (even though we have inflation above 2%, this is seen as temperary...cost push, oil / gas / food will fall....so questions on the economy should focus on increasing AD and LRAS......
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