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Are The Twin Deficits Really Related?

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  • STEPHEN M. MILLER
  • FRANK S. RUSSEK

Abstract

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 deficits are troublesome because they imply a transfer of wealth to foreigners and possibly a reduction in future generations' living standards. Copyright 1989 Western Economic Association International.

Suggested Citation

  • Stephen M. Miller & Frank S. Russek, 1989. "Are The Twin Deficits Really Related?," Contemporary Economic Policy, Western Economic Association International, vol. 7(4), pages 91-115, October.
  • Handle: RePEc:bla:coecpo:v:7:y:1989:i:4:p:91-115
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    References listed on IDEAS

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