By identity, current account = financial account. But this doesn't mean that causality runs from budget deficit or current account.
|Alberto Alesina||Harvard||Uncertain||2||Bio/Vote History|
|Joseph Altonji||Yale||Uncertain||3||Bio/Vote History|
|Alan Auerbach||Berkeley||Agree||5||Bio/Vote History|
|David Autor||MIT||Uncertain||5||Bio/Vote History|
|Katherine Baicker||Chicago||Did Not Answer||Bio/Vote History|
|Abhijit Banerjee||MIT||Agree||5||Bio/Vote History|
|Marianne Bertrand||Chicago||Uncertain||1||Bio/Vote History|
|Markus Brunnermeier||Princeton||Agree||8||Bio/Vote History|
|Raj Chetty||Stanford||Did Not Answer||Bio/Vote History|
|Judith Chevalier||Yale||Did Not Answer||Bio/Vote History|
|David Cutler||Harvard||Agree||7||Bio/Vote History|
|Angus Deaton||Princeton||Agree||7||Bio/Vote History|
|Darrell Duffie||Stanford||No Opinion||Bio/Vote History|
|Aaron Edlin||Berkeley||No Opinion||Bio/Vote History|
This is the "twin deficits hypothesis," which may or may not hold, depending on what happens to other categories of spending in response.
|Liran Einav||Stanford||No Opinion||Bio/Vote History|
|Ray Fair||Yale||Agree||5||Bio/Vote History|
|Amy Finkelstein||MIT||Uncertain||3||Bio/Vote History|
|Pinelopi Goldberg||Yale||Did Not Answer||Bio/Vote History|
|Austan Goolsbee||Chicago||Uncertain||1||Bio/Vote History|
it depends on how private saving/investment responds. i'm unaware of decisive empirical evidence on this (but perhaps it exists)
Depends on the fiscal action--more likely with a cut in government purchases
It depends on how it is done. Taxes up? Government expenditure down? It is also possible to have a large trade deficit with fiscal balance.
|Bengt Holmström||MIT||Did Not Answer||Bio/Vote History|
|Caroline Hoxby||Stanford||Did Not Answer||Bio/Vote History|
|Hilary Hoynes||Berkeley||Uncertain||9||Bio/Vote History|
If a dynamically balanced budget is expected, then timing of fiscal deficits will not affect anything.
|Steven Kaplan||Chicago||No Opinion||Bio/Vote History|
|Anil Kashyap||Chicago||Agree||7||Bio/Vote History|
It depends on how the budget deficit is reduced, of course.
-see background information here
|Jonathan Levin||Stanford||Did Not Answer||Bio/Vote History|
Depends on how the fiscal deficit reduction is achieved. If through higher consumer/income taxes, then trade deficit would probably decline.
Standard open economy macro for long run/full employment. Subject to reservations on timing, size, and equilibrium nominal interest rate.
|Emmanuel Saez||Berkeley||Agree||4||Bio/Vote History|
There are so many variables at work here, including how the deficit is reduced, to be sure of the effect.
|José Scheinkman||Princeton||Did Not Answer||Bio/Vote History|
All else equal...
|Carl Shapiro||Berkeley||Did Not Answer||Bio/Vote History|
|Robert Shimer||Chicago||Agree||7||Bio/Vote History|
|Richard Thaler||Chicago||Did Not Answer||Bio/Vote History|
|Christopher Udry||Yale||Did Not Answer||Bio/Vote History|
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