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ARE THE TWIN DEFICITS REALLY RELATED?

Contemporary Economic Policy, 1989
The emergence of record current‐account and fiscal deficits in the United States during the 1980s draws increasing attention to what has become known as the “twin deficit” problem. Conventional wisdom is that a shift to larger government deficits entails a decline in government saving and results in larger trade deficits, Persistently large trade ...
STEPHEN M. MILLER, FRANK S. RUSSEK
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The twin deficit hypothesis in Greece

2020
We examine the relationship between the current account deficit and the general government deficit in Greece.Furthermore, we check the validity of the twin deficit hypothesis using annual time series data for the 1970-2019 periods.In this work we accept the twin deficit hypothesis which means that there is a positive relationship between the current ...
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Widening Twin Deficits in the Subzones

2021
The two CFA subregions have experienced current account and fiscal deficits in recent years, mostly linked to adverse terms-of-trade shocks. These have been amplified in the wake of the pandemic.
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Rethinking the Twin Deficits [PDF]

open access: possible, 2014
This article reexamines the thesis that fiscal deficits cause trade deficits and challenges this explanation of the twin deficits with the following propositions. Differences in competitiveness among nations do not lead to balanced trade. Using a Eurozone case study, the article discusses the nexus between competitiveness and the trade balance ...
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Brazil's twin deficits: An empirical examination

Atlantic Economic Journal, 1998
This paper examines empirically the causal relationship between budget deficits and trade deficits for Brazil from 1973:1Q through 1991:4Q. This relationship is investigated in the context of Granger's test of causality. The final prediction error criterion, as outlined by Hsiao [1981], is applied in determining the appropriate lag length of the two ...
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Twin Deficits in the European Countries

International Advances in Economic Research, 2013
Public debt is a burden on future electors and taxpayers. In the absence of constitutional constraints, the incumbent government may show the cost of some public expenditures or tax reductions toward the future by financing them via new debt. However, according to the Ricardian theorem of public debt, the burden of debt is always anticipated via ...
FORTE F, MAGAZZINO, COSIMO
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The twin deficit hypothesis in Egypt

Journal of Policy Modeling, 2018
Abstract We employ a new approach to the twin deficit hypothesis aimed at enhancing policy making in Egypt. In contrast to the conventional twin deficit hypothesis between the current account, which comprises many items out of governments’ scope of maneuvering, and the budget deficit, we track the causal link between Egypt’s merchandise trade deficit
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TWIN DEFICITS AND TURKEY ECONOMICS

2021
Çalışmanın amacı; literatürde de önemli tartışmalara neden olan cari işlemlerdeki açıklar ile bütçe açıkları arasındaki ilişkiyi, 1985-2017 yılları arasındaki veriler kullanılarak, Ricardocu Denklik Hipotezi ve Geleneksel Yaklaşım açısından incelenmiştir.
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Facing up to the Twin Deficits

Challenge, 1984
A year ago, in appearing before the House Banking Committee to discuss the Federal Reserve's monetary policy for the year ahead, I emphasized that, after too many years of pain and instability, we had an enormous opportunity to sustain growth for years to come in an environment of much greater price stability.
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The twin deficits in the ASEAN countries

Evolutionary and Institutional Economics Review, 2020
Cosimo Magazzino
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