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

  • Farrokh K. Langdana

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.

Keywords

Europe Covariance Transportation Income Expense 

Preview

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