The role of fiscal policies for external imbalances : evidence from the European Union

We revisit the relation between budget deficits and current account deficits for 28 European Union countries from 1996 to 2019. We find that an increase in budget deficit of 1 pp of GDP results in a deterioration of the current account deficit of 0.318 pp of GDP, which supports the Twin Deficits Hyp...

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Bibliographic Details
Main Author: Afonso, António (author)
Other Authors: Coelho, José Carlos (author)
Format: workingPaper
Language:eng
Published: 2021
Subjects:
budget deficit
external deficit
European Union
fiscal rules
panel data
Online Access:http://hdl.handle.net/10400.5/21028
Country:Portugal
Oai:oai:www.repository.utl.pt:10400.5/21028

Internet

http://hdl.handle.net/10400.5/21028

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