Current account deficit (deficit on current account)

Roughly speaking, a country consumes more than it produces; more money is spent than is available, and this imbalance is compensated for by external capital inflows. Current account deficits over a period of several years usually indicate inefficient use of production factors (the scarce resources do not reach the most favorable allocation), with the exception of wars or natural disasters. – If aggregate savings in a period are smaller than investment, the negative balance of the current account indicates the savings gap. This gap must necessarily be covered abroad by reducing balances held abroad or by borrowing. – The globally interconnected financial market allows economies with high growth power to borrow abroad to finance growth, i.e. to make more investment than is possible through their own savings. The resulting expansion and improvement of the capital stock creates an increase in growth in subsequent periods, provided that the capital borrowed is used in an economically sensible manner. The interest on and repayment of the debt borrowed abroad can thus be made without restricting consumption. – See adjustment, symmetric, Greek crisis, growth differentials, intra-currency area. – Cf. Monthly Report of the Deutsche Bundesbank of July 2010, pp. 17 et seq. (Basic information on current account deficits; overviews; references), pp. 63 et seq. (Effect of current account deficits in the financial crisis), Monthly Report of the Deutsche Bundesbank of October 2011, pp. 50 et seq. (Current account deficits in the context of EU surveillance), Monthly Report of the ECB of January 2013, pp. 45 et seq. (Burden on the current account of oil imports in the euro area, broken down by country).
Definition of guiding principles and objectives (values statement): In the case of a bank, the requirements imposed on each employee that should shape his or her behavior at the institution (in-house) and in dealing with customers (in dealing with customers). Such a corporate culture is usually described in terms of written principles, such as honesty, customer friendliness, goodwill and honesty; it can also extend to outward appearances such as corporate fashion (a bank’s standards that reflect its culture by classifying fundamental rules concerning conduct and behavior in all business-related matters, quite often including corporate fashion and beyond that). – See banker regulars, behavioral branding, corporate governance, dress code, silo thinking, tenu-slut.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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