In the 1980s and 1990s there was a lot of discussion of the problem of the so-called "twin deficits". This was the argument that a government budget deficit would lead to a deficit on the current account of the balance of payment. Explain the logic of this. Somewhat more recently, in some countries we have observed both a budget surpluses and current account surplus in the same year. Does this prove the argument in reverse?
我不懂的地方是什麼是deficit on the current account of the balance of payment
還有a budget surpluses and current account surplus in the same year是反例嗎?
- MaLv 71 decade agoFavorite Answer
A. Balance of Payment (BOP) 是計算國際收支上的用語, 其中經常帳指的主要是一般買賣等行為所進行的款項支付 (移動); 主要是相對於資本帳.
B. A budget surpluses and current account surplus in the same year 是雙赤字 (預算赤字 + 國際貿易赤字) 之相反狀況.
~ the argument that a government budget deficit would lead to a deficit on the current account of the balance of payment. Explain the logic of this.~
以下節錄自 Fed Vice Chairman Roger W. Ferguson, Jr. 的談話
* 如果要引用請註明出處, 否則將構成抄襲 Plagiarism, 有空時該篇文章的上下文也看看.
1. Expansion of the fiscal deficit
~The view that the current account deficit arises from the widening U.S. budget deficit has received considerable attention of late and recalls the discussion of the mid-1980s, when the simultaneous emergence of fiscal and current account deficits in the United States gave rise to the "twin deficits" hypothesis. The simplest version of this hypothesis starts with the identity that the current account balance is equal to saving minus investment. Since the expansion of the fiscal deficit lowered public saving, the story runs, it must have lowered national saving and thus widened the current account balance to a similar extent. This version of the story is a bit too simple, however, as it assumes that private saving and investment remain constant, whereas in reality these quantities can and probably will change in response to a change in the fiscal balance. In the more sophisticated version of the story, a larger fiscal deficit boosts domestic demand, pushing up domestic interest rates relative to foreign rates; this, in turn, attracts investors and raises the value of the dollar, thereby leading to a larger current account deficit.~