The current account, fiscal policy, and medium-run income determination

Makin, Anthony J. (2004) The current account, fiscal policy, and medium-run income determination. Contemporary Economic Policy, 22 3: 309-317. doi:10.1093/cep/byh022

Author Makin, Anthony J.
Title The current account, fiscal policy, and medium-run income determination
Journal name Contemporary Economic Policy   Check publisher's open access policy
ISSN 1074-3529
Publication date 2004-07-01
Sub-type Article (original research)
DOI 10.1093/cep/byh022
Volume 22
Issue 3
Start page 309
End page 317
Total pages 9
Editor D.C. Hall
Place of publication Oxford, England
Publisher Oxford University Press
Language eng
Subject C1
340102 Macroeconomic Theory
340207 Labour Economics
720199 Macroeconomic issues not elsewhere classified
Abstract This article presents a new framework for analyzing the simultaneous determination of current account imbalances and the path of national income. Using standard macroeconomic behavioral relationships, it first examines how and why current account deficits matter by investigating links between domestic consumption, government spending, output, saving, investment, interest rates, and capital flows. Central to the model is the distinction between aggregate output and expenditure that enables dissection of the effects of discretionary fiscal change on the current account and national income. The framework yields results relevant to the twin deficits hypothesis that are contrary to those of standard models.
Keyword Economics
Public Administration
Q-Index Code C1

Document type: Journal Article
Sub-type: Article (original research)
Collections: 2005 Higher Education Research Data Collection
School of Economics Publications
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Citation counts: TR Web of Science Citation Count  Cited 8 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 10 times in Scopus Article | Citations
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Created: Wed, 15 Aug 2007, 13:39:13 EST