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The Relationship of the Current Account Balance and the Budget Balance

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  • L.E. Winner

Abstract

This paper demonstrates that the traditional theory, that the current account balance and the budget balance are positively related, does not uphold when applied to Australian data. On the other hand, Australian data seems to indicate that Ricardian Equivalence Theorem better explains the movements in the economy.

Suggested Citation

  • L.E. Winner, 1993. "The Relationship of the Current Account Balance and the Budget Balance," The American Economist, Sage Publications, vol. 37(2), pages 78-84, October.
    • Handle: RePEc:sae:amerec:v:37:y:1993:i:2:p:78-84
    DOI: 10.1177/056943459303700213
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    References listed on IDEAS

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    1. Evans, Paul, 1986. "Is the dollar high because of large budget deficits?," Journal of Monetary Economics, Elsevier, vol. 18(3), pages 227-249, November.
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    Cited by:

    1. Bilgili, Faik & Bilgili, Emine, 1998. "Bütçe açığının cari işlemler üzerindeki etkileri: Teori ve uygulama [The effects of budget deficit on current account balance: Theory and empirical evidence]," MPRA Paper 80866, University Library of Munich, Germany.

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