[word=current] [lemma=account] □ □
[word=current] [lemma=account] [□] □
[word=current] [lemma=account] □? □
Reserves should ideally be related to the volatility of the current account or of short term capital flows . The secular decline in the household financial saving rate in the United States has been remarkable and , through its effect on the current account , has materially supported global demand . Now , in this context , a noteworthy development that you may see here in the last year has been that , while there have been substantial outflows in the years up to 2000 , $ 50 billion , China 's balance of payments , other than FDI and current account , has actually strengthened a lot in the last year , which has then boosted the reserve increase to almost $ 50 billion in the last year , in 2001 . Relative to the size of trade flows , the present nexus of current account balances has risen to levels almost never seen in industrial countries in the postwar era . The intertemporal approach to current account balances is well-grounded in economic theory . A return to smaller current account deficits requires a rise in saving and / or a fall in investment as a share of gross domestic product .