There are two standard views of the Great Depression of the 1930's. Keynesians maintain that the capitalist system is, by its very nature, prone to overproduction and, in the absence of government intervention, excessive inventories will periodically lead to falling prices and to growing unemployment which will further compound the collapse in demand. They advocate public works financed, if nee...

Purpose This study aims to examine the impact of fiscal deficit, exchange rate and trade openness on current account deficit (CAD). The tried empirically investigate ‘twin deficits hypothesis’ ‘compensation in Indian context. Design/methodology/approach Autoregressive distributed lagARDL) bound test approach was used by taking annual time series data from 1978 2021. estimates confirm a signific...

Fiscal vulnerability, like a contagion, poses threat to financial sector stability, which can lead towards sovereign default. This study aimed assess fiscal vulnerability crisis by investigating the Australian economy’s gross public debt, net and liabilities. We used threshold regression model compared results with baseline deficit–debt framework of analysis. The base suggested that economy is ...

The aging of Japan’s population will affect both macroeconomic and fiscal developments in the country. The larger the increase in elderly population, the more inter-generational income transfers are incurred, with heavier burdens levied on the working generations. In addition, the risk is that the government deficit will grow without control due to a substantial increase in social security paym...

The objective of this study to examine the econometric technique triple deficit’s hypothesis in existence multiple structural breaks. Triple deficit theory is a put forward by expanding twin theory, recognize private together with trade and budget investigate relationship among these under Keynesian approach. annual time series data has been used from 1975 2020. This applied techniques that cap...

Most discussion of the Government’s fiscal position seems to focus on the immediate risks associated with a rising national debt. There is concern that the UK’s credit rating will be reduced and fear that this might lead to a further fall of the exchange rate. It is sometimes suggested that if the budget deficit is not reduced sharply in the reasonably near term there will be a significant risk...

There have been many currency crises during the postwar era (see Kaminsky and Reinhart, 1999). A currency crisis is an episode in which the exchange rate depreciates substantially during a short period of time. There is an extensive literature on the causes and consequences of a currency crisis in a country with a fixed or heavily managed exchange rate. The models in this literature are often c...

The dramatic fall in state government revenues during the “Great Recession” and the resultant large budget deficits accentuated concerns about the fiscal sustainability of state finances. We use a modelbased approach proposed by Bohn (1998) to test for state fiscal sustainability. In this approach, a positive response of the primary surplus to government debt (both as a ratio of output) constit...

This study intends to provide an empirical answer to the question of whether Maastricht and SGP fiscal rules have affected growth of European Union countries. A growth equation augmented with fiscal variables and controlling for the period in which fiscal rules were implemented in Europe is estimated over a panel of 15 EU countries (and 8 OECD countries) for the period 1970-2005 with the purpos...