Corsetti, Giancarlo; Müller, Gernot J. - In: Journal of the European Economic Association 6 (2008) 2-3, pp. 404-413
In this article, we study the co-movement of the government budget balance and the trade balance at business-cycle frequencies. In a sample of 10 OECD countries we find that the correlation of the two time series is negative, but less so in more open economies. Moreover, for the U.S. the...