Since the net interest rate has been less than the GDP growth rate, the ratio of external debt to GDP could have been stabilized with a moderate primary trade deficit.5  Magnitudes It is well known that the U.S. economy now suffers both budget and trade deficits. But how do these deficits compare with the stability conditions?
That delicate balance between servicing needs in a dynamic cash market and the developmental nature of a thriving capital market creates a measure of financial market stability. In a narrow sense, the absence of forces that can instigate financial market instability is certainly always welcome.