Fiscal Policy and the External Deficit: Siblings, but not Twins / John F. Helliwell.

Format:

Book

Author/Creator:

Helliwell, John F.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w3313.

NBER working paper series no. w3313

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Fiscal Policy and the External Deficit

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1990.

Summary:

This paper first surveys a number of partial and macroeconomic approaches to the determination of the current account, and then summarizes the evidence from multicountry economic models about the linkages between U.S. government spending and the U.S. current account during the 1 980s. The available evidence from a large number of multicountry models suggests that the U.S. fiscal policy of the first half of the 1980s was responsible for about half of the buildup in the external deficit, and that the accumulated net foreign debt is about 500 billion dollars higher than it would have been without the fiscal expansion.

Notes:

Print version record

April 1990.