The Relationship of the Current Account Balance and the Budget Balance

L.E. Winner

The American Economist, 1993, vol. 37, issue 2, 78-84

Abstract: This paper demonstrates that the traditional theory, that the current account balance and the budget balance are positively related, does not uphold when applied to Australian data. On the other hand, Australian data seems to indicate that Ricardian Equivalence Theorem better explains the movements in the economy.

Date: 1993
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Persistent link: https://EconPapers.repec.org/RePEc:sae:amerec:v:37:y:1993:i:2:p:78-84

DOI: 10.1177/056943459303700213

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