Brad Setser on Dark Matter as an Explanation for the Net Income from Abroad Puzzle

We earlier noted how we were awaiting a comment from Brad Setser on the Dark Matter excuse for not worrying about the current account deficit. Brad delivers with a very thorough discussion of the issue – including a transfer pricing explanation for the Net Income from Abroad Puzzle.

OK, I’ll admit I just linked to a few of my posts but Brad has done such an excellent job of linking to other commentaries that I highly recommend one takes the time to follow all of his links and read his commentary.