An introduction to the international implications of U.S. fiscal policy

Owen Humpage

Economic Review, 1992, vol. 28, issue Q III, 27-39

Abstract: A challenge to the commonly held belief that aggregate U.S. fiscal policy measures, especially the federal budget deficit, bear a simple and direct causal relationship with U.S. interest rates, exchange rates, and the trade balance, concluding that fiscal policies can--but need not--cause trade deficits.

Date: 1992
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