In macroeconomics, the twin deficits hypothesis or the twin deficits phenomenon, is the observation that, theoretically, there is a strong causal link between a nation's government budget balance and its current account balance. == Definition == Standard macroeconomic theory points to how a budget deficit can be a contributing factor to a current account deficit.
In macroeconomics, the twin deficits hypothesis or the twin deficits phenomenon, is the observation that, theoretically, there is a strong causal link between a nation's government budget balance and its current account balance. == Definition == Standard macroeconomic theory points to how a budget deficit can be a contributing factor to a current account deficit.
Source: Wikipedia "Twin deficits hypothesis" · CC BY-SA 4.0
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