Overview
The current account is a term in the National Accounts equation. It is defined as
{% CA = EX- IM %}
Rearranging the terms of the national accounts equation, we have
{% CA = Y - (C + I + G) %}
This form of the current account shows that the current account expresses the difference between what agents in the economy
earn, and what they spend within the economy. That is, in order to finance a current account deficit requires borrowing from
the countries with whom they trade. Likewise, running a surplus requires lending to national trading partners.