This was soon recognized since the unsustainability of growing current account imbalances was evident, even though variations in the value of financial assets and liabilities contributed to reducing the explosive expansion of the country’s net external position (Figure 1).
A widening array of financial choices offers the potential for great benefits to the public, but also poses temptations. More and more people are gaining access to credit; indeed, a host of lenders is probably inundating them with solicitations. The public can also select from a wide variety of savings vehicles, each with its special features.