UK: A CURRENT ACCOUNT CONUNDRUM.

UK: A CURRENT ACCOUNT CONUNDRUM. - It wasn't the best of times - but on the other hand it wasn't the worst of times either. In fact, just recently, it was one of those unusual times when, by some accident or other, my income seemed to be in excess of my

by David Morton.

It wasn't the best of times - but on the other hand it wasn't the worst of times either. In fact, just recently, it was one of those unusual times when, by some accident or other, my income seemed to be in excess of my expenditure. Now, admittedly, the difference between what I was managing to earn and what I was managing to spend was not by any means large.

But, even so, we all know what happens to countries like Japan which start to run up a persistent current account surplus. As a result I was naturally anxious not to find myself destabilising that part of the global economy which has localised itself around my existence primarily as a consumer - and only occasionally as a provider - of goods and services.

Now, of course, it's easy enough if you're a country or even a major international company. You just cut taxes, push up the exchange rate and do something with the Base Lending Rate. Or, alternatively, you increase dividends or diversify the business into something exciting and loss-making like film studios.

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