What is the difference between the U.S. current account deficits of th

What is the difference between the U.S. current account deficits of the 1980s and the 1990s?

What will be an ideal response?

ANSWER

In the 1980s, the government budget balance (T-G) turned into a large negative, and foreign financing filled the gap. In the 1990s, the federal budget moved to a positive balance, but investment expanded and private savings fell, overwhelming the changes in the government budget position.