Twin deficits hypothesis

In macroeconomics, the twin deficits hypothesis or the twin deficits phenomenon,[1] is the observation that, theoretically, there is a strong causal link between a nation's government budget balance and its current account balance.[2]

  1. ^ Miller, Stephen M.; Russek, Frank S. (1 October 1989). "Are the Twin Deficits Really Related?". Contemporary Economic Policy. 7 (4): 91–115. doi:10.1111/j.1465-7287.1989.tb00577.x. ISSN 1465-7287.
  2. ^ FRBSF Economic Letter Understanding the Twin Deficits: New Approaches, New Results, Michele Cavallo, July 22, 2005