Vassar College Digital Library
Abstract
The traditional classroom presentation of international macroeconomic issues obscures the link between budget deficits, exchange rates, and the trade deficit. The article offers a simple supply and demand framework to clarify the role of budget deficits in creating trade deficits. The same framework can also be used to present other comparative statics results where the effect on the trade deficit is of interest.
Details
Department or Program
Document Type
Issue Number
4
Page Numbers
388-394
Paper Number
1
Peer Reviewed
Reviewed
Publication Date
1989-11-01
Source Publication
Volume Number
21
English
Repository Collection
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Document Type