Abstract
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.
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© 2002 Springer Science+Business Media New York
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Langdana, F.K. (2002). Budget Deficits, Trade Deficits and Global Capital Flows: The National Savings Identity. In: Macroeconomic Policy. Springer, Boston, MA. https://doi.org/10.1007/978-1-4757-3646-5_3
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DOI: https://doi.org/10.1007/978-1-4757-3646-5_3
Publisher Name: Springer, Boston, MA
Print ISBN: 978-1-4757-3648-9
Online ISBN: 978-1-4757-3646-5
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