I suggest we be careful about letting our deficit get too small like Japan did should our economy begin to recover.
And if we do, I suggest we stand ready to reverse any decline in the deficit immediately should things begin to turn south.
The right size deficit is the one that coincides with full employment.
And it’s the same size deficit that coincides with ‘net savings desires’ for that currency.
This varies from nation to nation, and also over time with changing financial conditions.