Write up 2

“Can dark matter prevent a big-bang?” by Haussman and Sturzenegger, 2005.

1. State two ways of calculating the Net Foreign Asset (NFA) position for a country.

2. What’s “dark matter” referring to? What’s the component of the US Current Account that does not “add up”?

3. Explain the authors’ calculations.

4. What’s the conclusion about trade deficits/surpluses around the world?