Orthodox trade theory focuses on the reallocation of real resources through trade and ignores the monetary/financial and balance sheet aspects of trade. Once in a while, the Twin Deficits bogey is raised to warn about the perils of fiscal deficits, but current account deficits themselves are generally viewed benignly.

The significance of credit goes beyond simply accommodating changes in the economy’s fundamentals. Credit itself may be among the drivers of the business cycle.

The Private Debt Project and the St. Louis Federal Reserve Bank's Center for Household Financial Stability are proud to present the third of our annual "Tipping Points" Household Debt Symposia. Read and download the sessions.