GRIER, KEVIN; YE, HAICHUN - In: Economic Inquiry 47 (2009) 4, pp. 625-638
"Interest in the twin deficits hypothesis fluctuates in tandem with the U.S. current account deficit. Surprisingly though, a statistically robust relationship between budget and trade deficits has been difficult to pin down. We argue that a big part of this difficulty is due to the failure to...