In the United States and most developed countries, the current account and the combined financial/capital accounts tend to be inversely related in that when one is positive, the other tends to be negative.

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This is a well-known economic principle known as the "twin deficits" hypothesis, which suggests that a current account deficit tends to lead to a financial/capital account surplus, and vice versa. This is due to the fact that a current account deficit indicates that a country is importing more than it is exporting, which means that it needs to borrow money from other countries to finance its consumption. On the other hand, a financial/capital account surplus indicates that a country is investing more in other countries than it is receiving in investments from other countries, which can lead to a buildup of foreign assets and a long-term current account surplus or a decrease in the current account deficit.

In the United States and Most Developed Countries, the Current