The Current Account In Previous Tax Cut/Spend Regimes

From Econbrowser
January 9, 2017 - 9:18pm

We have had previous experience with episodes of tax cuts unmatched by spending reductions, in terms of the impact on external balances. Below I plot the evolution of the Reagan twin deficits, and the evolution of the G.W. Bush twin deficits. Figure 1: Federal government net saving (blue), and current account lead by two years […]



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