reduce exchange rate volatility and to smooth interest rates. Steep depreciations combined with volatility did not help …

This paper examines the effect of exogenous shocks to savings on world capital markets. Using the exogenous shocks to … accounting identities of the US and the rest of the world. We find that exogenous tax increases are only partially offset by … deficits and increases in investment in other countries in the world. We cannot reject that the shock is uniformly transmitted …