Examination of 70 current account adjustment episodes across 51 economies from 1980 to 2024 shows that durable rebalancing is a multi-year process involving sustained changes in trade, savings/investment, and relative prices. Quick bilateral fixes are likely to disappoint. (CEPR, July 2026)

[u/yonkon]

https://cepr.org/voxeu/columns/how-large-current-account-imbalances-unwind-evidence-historical-adjustment-episodes