Trade deficits are caused by the balances between saving and investment and the effects of those balances on international flows of capital. Generally, there are three primary sources of the trade deficit: a decline in saving/GDP ratio; fluctuations in the business cycles; investment...

This paper proposes a simple method to assess the sustainability of public finances in Romania, which uses the twin deficits concept. We conclude that the sustainability of the country has been seriously affected by the recent crisis, but to a larger extent by the inappropriate design of...