> Using national accounting, one can show deficits are also due to a persistent shortfall in domestic saving that requires funds from abroad to finance domestic investment spending.
The cause is persistent shortfall in domestic saving and the effect is using abroad dollars to finance spending.
The cause starts from both micro agents secularly deciding to spend more than save and from the government making law large deficits (a large source of not saving).
But which is the cause, and which is the effect?