In spite of concerns about "twin deficits" (fiscal and the current account deficits) for the United States economy, empirical evidence suggests that "twin divergence" is a more usual feature of the historical data, i.e., when fiscal accounts worsen, the current account improves and vice versa....

In spite of the concerns about "twin deficits" (fiscal and current account deficits) for the U.S., empirical evidence suggests that “twin divergence” is a more regular feature of the data: when the fiscal accounts worsen, the current account improves and vice versa. We thus study empirically...

In spite of the concerns about “twin deficits†(fiscal and current account deficits) for the U.S., empirical evidence suggests that “twin divergence†is a more regular feature of the data: when the fiscal accounts worsen, the current account improves and vice versa. We thus...