Vassar Scholarship
How budget deficits cause trade deficits: The simple analytics
Publication Date
1989-November-01
Document Type
Department or Program
Document Type
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...
