1. Should a tax be imposed on countries running a persistent balance of payments surplus, on the grounds that such surpluses are deflationary and a danger to the world trading system? 2. Under what...

1. Should a tax be imposed on countries running a persistent balance of payments surplus, on the grounds that such surpluses are deflationary and a danger to the world trading system?

2. Under what circumstances could a country simultaneously have a balance of trade surplus and a current account deficit? Give examples of countries with this combination.