The big current-account deficits in the late 1880s and early 1890s were financed primarily by

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The late 1880s and early 1890s saw big current account deficits being financed primarily by borrowing from other nations, especially England. This helped to cover the shortfall in the balance of trade, as imports exceeded exports, and maintain economic growth. The borrowing was often in the form of government bonds, which carried interest and had to be repaid over time.

The Big Current-Account Deficits in the Late 1880s and Early