Budget Deficits, Trade Deficits and Global Capital Flows: The National Savings Identity

  • Farrokh K. Langdana


In this cornerstone chapter, the vitally important National Savings Identity (NSI), linking trade and budget balances to global capital flows, interest rates, and exchange rates, makes its first appearance. In many ways, this chapter, linking the “twin deficits” in a fundamentally intuitive manner, sets the tone for macroeconomic policies to be discussed in following chapters.


Interest Rate Current Account Budget Deficit Capital Inflow Government Debt 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Springer Science+Business Media New York 2002

Authors and Affiliations

  • Farrokh K. Langdana
    • 1
  1. 1.Rutgers Business SchoolUSA

Personalised recommendations