The sustainability of budget deficits

Budget Deficit Sustainability of Bangladesh

Article History Received: 7 March 2017 Revised: 23 May 2017 Accepted: 14 June 2017 Published: 4 July 2017

Optimal Budget Deficits

Do Budget Deficits Cause Inflation ?

In 2004, the federal budget deficit stood at $412 billion and reached 4.5 percent of gross domestic product (GDP). Though not at a record level, the deficit as a fraction of GDP is now the largest since the early 1980s. Moreover, the recent swing from surplus to deficit is the largest since the end of World War II (Figure 1). The flip side of deficit spending is that the amount of government de...

Assessment of Budget Sustainability in Sarawak

This study reexamines the sustainability of budget stance of Sarawak state, 1970-2008. Using the intertemporal borrowing constraint as a framework, the study tests the long-run relationship between government revenue and expenditure. Empirical results demonstrate a long-run equilibrium relationship among the variables. The cointegration test result suggests that Sarawak state’s fiscal stance sa...

Twin Deficits An empirical analysis on the relationship between budget deficits and trade deficits in Argentina

The majority of existing literature on the twin deficits hypothesis focuses on its effects in economies already well developed. The theory suggests that there is a causal relationship between the budget deficit and trade deficit of a nation, a claim often debated in the economic community. This paper attempts to supplement existing literature by examining the causal relationship between budget ...