Construct · 1 fields · 1 citations

twin deficits hypothesis: a standalone construct

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International macroeconomics

the claim that a larger government budget deficit worsens the current account, tested against evidence of twin divergence.

In international macroeconomics, twin deficits hypothesis refers to the claim that a larger government budget deficit worsens the current account, tested against evidence of twin divergence. This meaning comes from Kim (2008) in Journal of International Economics.[1]

Unit
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Nearby constructs

current3 fields · 6 citationsjingle · one word, three constructs divergence4 fields · 4 citationsjingle · one word, four constructs evidence2 fields · 4 citationsjingle · one word, two constructs

References

Kim, S., & Roubini, N. (2008). Twin deficit or twin divergence? Fiscal policy, current account, and real exchange rate in the U.S. Journal of International Economics, 74(2), 362-383. https://doi.org/10.1016/j.jinteco.2007.05.012

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