A consensus has not yet emerged about the relationship between the budget deficit, external deficit and national saving. In general, the mechanisms through which a budget deficit could cause a current account deficit are not highlighted in the works about this theme. Basing on the Post Keynesian...

A consensus has not yet emerged about the relationship between budget deficit, external deficit and national saving. According to mainstream economic literature, the budget deficit can cause an insufficiency of national saving for a given investment rate. In such cases, the investment rate will...

The theoretical and empirical international trade literature suggests that there is long-term valuation/devaluation of the real exchange rate in the developed/undeveloped economies. We argue that the real exchange rate is affected by: i) intercountry differentials of the services sector...

In countries where per capita income is high the price level is higher than the level observed in countries where per capita income is low. This phenomenon is associated with real exchange rate appreciation in the rich countries and with the real exchange rate depreciation in the poor countries,...