Politická ekonomie 2002, 50(5) | DOI: 10.18267/j.polek.379
Makroekonomické souvislosti rozpočtových deficitů
Macroeconomic impacts of budgetary deficits
The article deals with the application of basic macroeconomic identity (domestic investment, private and government saving, foreign investment) at the Czech data in the time period 1994 - 2001. The application discovers that the twin deficits hypothesis (both the budgetary and trade balance deficits) known from the United States at the end of eighties and beginning of nineties has become reality in the Czech Republic since 1998. Scatter diagrams and a little bit of econometrics (quarterly, seasonal adjusted data 1994:Q1 - 2001:Q4) display the causation from budgetary to foreign trade deficits and support the conventional (keynesian) approach. Disquieting is the tendency, not yet the level of budgetary deficits (4 different measures according to the Czech Ministry of Finance).
Keywords: twin deficits, basic macroeconomic identity, scatter diagrams, tentative econometric models
Published: October 1, 2002 Show citation
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