Evil Twins: US Federal Budget Deficits and US Trade
How Do US Current Account Deficits Arise? One hears little today of the US “twin deficits,” a phrase familiar during the 1980s when the US had consistently run both federal budget deficits and international trade deficits. Economists hypothesized at that time that there was a theoretical and/or empirical relationship assuring the two deficits’ increasing or […]
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