An Analysis of the Sectoral Balances in EY Countries
This study addresses the issue of relations between the balances of individual sectors, applying standard statistical measures. A number of general observations were make. First, it is apparent that imbalances of the public, private and external sectors in most EU countries have tended to increase over time, with increases being more muted in the 1990s than in the 1970s and 1980s. Second, "multiple deficits" became the rule rather than the exception. Third, it appears that the closest relationship existed between the two domestic sectors. Forth, the statistical measures used implied that private and public sector balances in ost cases were non-stationary.
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