Current account deficits and sustainability: Evidence from the OECD countries

► We examine the sustainability of the current account balances of the OECD countries. ► Conflicting results on sustainability are shown based on traditional unit root tests. ► It is very likely that the LRBC will not hold for the OECD countries. ► It signifies a red signal for the current account deficits of the OECD countries.