The most benign adjustment would be for the euro area and other countries to benefit from an acceleration in productivity, much as the United Sates has enjoyed. This would lead to a reversal of capital flows and depreciation of the dollar, with income and relative price effects contributing to a moderation in the U.S. current account deficit.
A high growth economy should generate more of the saving needed to BIS Review 72/1997  -5-  finance the investment. Reducing the public dissaving inherent in running a deficit in the Federal budget also adds to national saving.