| They tiptoed back to financing industry after 1898, but on the basis of current-account credit and bills of exchange rather than the purchase of share capital. |
| However, current-account deficits are not very useful as warning signals for countries that have fully convertible currencies. |
| One reason is that Japan has a deep domestic savings pool and a massive current-account surplus. |
| The recovery is on track, the current-account surplus is healthy, capital flows are strong, companies are restructuring and the recapitalization of banks is almost complete. |
| But how do inequality and the accrual of wealth in themselves affect or result from the trade and current-account deficit? |
