IDEAS home Printed from https://ideas.repec.org/a/fip/fedfer/y1984ifallp5-25.html
   My bibliography  Save this article

Budget deficits, exchange rates and the current account: theory and U. S. evidence

Author

Listed:
  • Michael M. Hutchison
  • Charles Pigott

Abstract

No abstract is available for this item.

Suggested Citation

  • Michael M. Hutchison & Charles Pigott, 1984. "Budget deficits, exchange rates and the current account: theory and U. S. evidence," Economic Review, Federal Reserve Bank of San Francisco, issue Fall, pages 5-25.
    • Handle: RePEc:fip:fedfer:y:1984:i:fall:p:5-25
    as

    Download full text from publisher

    File URL: http://www.frbsf.org/publications/economics/review/1984/84-4_5-25.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Turnovsky, Stephen J., 1976. "The dynamics of fiscal policy in an open economy," Journal of International Economics, Elsevier, vol. 6(2), pages 115-142, May.
    2. Jeffrey Sachs & Charles Wyplosz, 1984. "Real Exchange Rate Effects of Fiscal Policy," NBER Working Papers 1255, National Bureau of Economic Research, Inc.
    3. Michael M. Hutchison, 1984. "Intervention, deficit finance and real exchange rates: the case of Japan," Economic Review, Federal Reserve Bank of San Francisco, issue Win, pages 27-44.
    4. Dornbusch, Rudiger, 1976. "Expectations and Exchange Rate Dynamics," Journal of Political Economy, University of Chicago Press, vol. 84(6), pages 1161-1176, December.
    5. Friedman, Benjamin M, 1982. "Interest Rate Implications for Fiscal and Monetary Policies: A Postscript on the Government Budget Constraint: A Note," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 14(3), pages 407-412, August.
    6. Campbell, John Y & Shiller, Robert J, 1984. "A Simple Account of the Behavior of Long-Term Interest Rates," American Economic Review, American Economic Association, vol. 74(2), pages 44-48, May.
    7. Robert A. Mundell, 1962. "The Appropriate Use of Monetary and Fiscal Policy for Internal and External Stability," IMF Staff Papers, Palgrave Macmillan, vol. 9(1), pages 70-79, March.
    8. Hodrick, Robert J., 1980. "Dynamic effects of government policies in an open economy," Journal of Monetary Economics, Elsevier, vol. 6(2), pages 213-239, April.
    9. Feldstein, Martin & Horioka, Charles, 1980. "Domestic Saving and International Capital Flows," Economic Journal, Royal Economic Society, vol. 90(358), pages 314-329, June.
    10. Benjamin M. Friedman, 1982. "Interest Rate Implications for Fiscal and Monetary Policies: A Postscript on the Government Budget Constraint," NBER Working Papers 0886, National Bureau of Economic Research, Inc.
    11. R. Dornbusch, 1975. "Exchange Rate Dynamics," Working papers 167, Massachusetts Institute of Technology (MIT), Department of Economics.
    12. David, Paul A & Scadding, John L, 1974. "Private Savings: Ultrarationality, Aggregation, and "Denison's Law."," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 225-249, Part I, M.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ahmad Baharumshah & Evan Lau & Ahmed Khalid, 2006. "Testing Twin Deficits Hypothesis using VARs and Variance Decomposition," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 11(3), pages 331-354.
    2. Evan Lau & Tuck Cheong Tang, 2009. "Twin deficits in Cambodia: An Empirical Study," Economics Bulletin, AccessEcon, vol. 29(4), pages 2783-2794.
    3. Brito Romero, Marycris & Peguero, Anadel G. & Cruz-Rodríguez, Alexis, 2020. "¿Hay evidencias de déficits gemelos en la economía dominicana? [Is there evidence of twin deficits in the Dominican economy?]," MPRA Paper 100938, University Library of Munich, Germany.
    4. Adian McFarlane & Young Cheol Jung & Anupam Das, 2020. "The dynamics among domestic saving, investment, and the current account balance in the USA: a long-run perspective," Empirical Economics, Springer, vol. 58(4), pages 1659-1680, April.
    5. E Lau & S Abu Mansor & C-H Puah, 2010. "Revival of the Twin Deficits in Asian Crisis-affected Countries," Economic Issues Journal Articles, Economic Issues, vol. 15(1), pages 29-54, March.
    6. Owen F. Humpage, 1992. "An introduction to the international implications of U.S. fiscal policy," Economic Review, Federal Reserve Bank of Cleveland, vol. 28(Q III), pages 27-39.
    7. Sundell, Paul & Denbaly, Mark, 1992. "Modeling Long-Term Government Bond Yields: An Efficient Market Approach," Staff Reports 278623, United States Department of Agriculture, Economic Research Service.
    8. G. Vamvoukas, 1997. "Have large budget deficits caused increasing trade deficits? Evidence from a developing country," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 25(1), pages 80-90, March.
    9. Nazma Latif-Zaman & Maria N. DaCosta, 1990. "The Budget Deficit and the Trade Deficit: Insights into This Relationship," Eastern Economic Journal, Eastern Economic Association, vol. 16(4), pages 349-354, Oct-Dec.
    10. J. D. Pitchford, 1986. "The Australian Economy: 1985 and Prospects for 1986," The Economic Record, The Economic Society of Australia, vol. 62(1), pages 1-21, March.
    11. Umer J. Banday & Ranjan Aneja, 2017. "Does Fiscal Deficit Affect Current Account Deficit in India? An Econometric Analysis," Review of Market Integration, India Development Foundation, vol. 9(3), pages 155-174, December.
    12. Frederick T. Furlong, 1989. "International dimensions of U.S. economic policy in the 1980s," Economic Review, Federal Reserve Bank of San Francisco, issue Spr, pages 3-16.
    13. Reuven Glick, 1988. "Saving-investment determinants of Japan's external balance," Economic Review, Federal Reserve Bank of San Francisco, issue Sum, pages 3-14.
    14. Evan Lau & Tuck Cheong Tang, 2009. "Twin deficits in Cambodia: Are there Reasons for Concern? An Empirical Study," Monash Economics Working Papers 11-09, Monash University, Department of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tarlok Singh, 2007. "Intertemporal Optimizing Models Of Trade And Current Account Balance: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 21(1), pages 25-64, February.
    2. Luis Arango & Yanneth Betancourt, 2005. "A signal of imperfect portfolio capital adjustments from the domestic and foreign Colombian debt," Applied Financial Economics, Taylor & Francis Journals, vol. 15(9), pages 587-597.
    3. repec:hal:spmain:info:hdl:2441/5221 is not listed on IDEAS
    4. Bruno Ducoudre, 2008. "Structure par terme des taux d’intérêt et anticipations de la politique économique," Sciences Po publications info:hdl:2441/5221, Sciences Po.
    5. Thomas Plümper & Vera E. Troeger, 2006. "Fear of Floating and the External Effects of Currency Unions," The Institute for International Integration Studies Discussion Paper Series iiisdp181, IIIS.
    6. Adrian W. Throop, 1989. "Fiscal policy, the dollar, and international trade: a synthesis of two views," Economic Review, Federal Reserve Bank of San Francisco, issue Sum, pages 27-44.
    7. Laffargue Jean-pierre, 1981. "Politiques budgétaire et monétaire en régime de changes flexibles," CEPREMAP Working Papers (Couverture Orange) 8126, CEPREMAP.
    8. Jyh-Lin Wu, 1994. "Fiscal announcements and real exchange rate dynamics," Open Economies Review, Springer, vol. 5(2), pages 177-190, March.
    9. Wyplosz, Charles, 2001. "Exchange Rate Regimes: Some Lessons from Postwar Europe," CEPR Discussion Papers 2723, C.E.P.R. Discussion Papers.
    10. Chinn, Menzie D, 1999. "On the Won and Other East Asian Currencies," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 4(2), pages 113-127, April.
    11. Ali Trabelsi Karoui & Aida Kammoun, 2021. "Exchange Rate Determination: Mixed Microstructural and Macroeconomic Approach," International Journal of Economics and Financial Issues, Econjournals, vol. 11(3), pages 89-106.
    12. Charles Yuji Horioka & Nicholas Ford, 2017. "The Solution to the Feldstein-Horioka Puzzle," ISER Discussion Paper 1016, Institute of Social and Economic Research, Osaka University.
    13. Maurice Obstfeld & Kenneth S. Rogoff, 2000. "Perspectives on OECD economic integration : implications for U.S. current account adjustment," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 169-208.
    14. Hoon, Hian Teck & Phelps, Edmund S., 2007. "A structuralist model of the small open economy in the short, medium and long run," Journal of Macroeconomics, Elsevier, vol. 29(2), pages 227-254, June.
    15. Charles van Marrewijk, 2005. "Basic Exchange Rate Theories," Tinbergen Institute Discussion Papers 05-024/2, Tinbergen Institute.
    16. Akhand Akhtar Hossain, 2009. "Central Banking and Monetary Policy in the Asia-Pacific," Books, Edward Elgar Publishing, number 12777.
    17. Habib Ahmed & C. Paul Hallwood & Stephen M. Miller, 2006. "The Exchange Rate-Investment Nexus and Exchange Rate Instability: Another Reason for 'Fear of Floating'," Working papers 2006-15, University of Connecticut, Department of Economics, revised Jan 2009.
    18. V. V Chari & Patrick J. Kehoe & Ellen R. McGrattan, 2002. "Can Sticky Price Models Generate Volatile and Persistent Real Exchange Rates?," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 69(3), pages 533-563.
    19. Stephen Grenville, 2010. "Central Banks and Capital Flows," Chapters, in: Masahiro Kawai & Mario B. Lamberte (ed.), Managing Capital Flows, chapter 3, Edward Elgar Publishing.
    20. Gylfason, Thorvaldur & Helliwell, John F, 1983. "A Synthesis of Keynesian, Monetary, and Portfolio Approaches to Flexible Exchange Rates," Economic Journal, Royal Economic Society, vol. 93(372), pages 820-831, December.
    21. António Afonso & Christophe Rault, 2008. "Budgetary and External Imbalances Relationship : a Panel Data Diagnostic," Working Papers Department of Economics 2008/45, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedfer:y:1984:i:fall:p:5-25. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Federal Reserve Bank of San Francisco Research Library (email available below). General contact details of provider: https://edirc.repec.org/data/frbsfus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.