If capital inflows were to dry up, the current-account deficit would
have to shrink, either through a slump in domestic demand or a fall
in the dollar, or both. A study by the Federal Reserve of large
current-account deficits in developed economies found that
deficits usually began to reverse when they exceeded 5% of GDP.
And this adjustment was accompanied by an average fall in the
nominal exchange rate of 40%, along with a sharp slowdown in
GDP growth.

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<ul> ~ http://www.economist.com/opinion/displayStory.cfm?story_id=1098936</ul>
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