Fiscal Policy x Current account (Abbas et.alli)

Fiscal policy and the current account by S. M. Alo Abbas, Jacques Bouhga-Hagbe, Antonio J. Fatás, Paolo Mauro and Ricardo C. Velloso, published by IMF. This paper analyzes the relationship between fiscal policy and the current account. Changes in fiscal policy are indeed associated with changes in the current account, but the relationship is far less than one-for-one. For these large episodes, a mild association is observed between fiscal policy and the current account, primarily for low income countries. http://migre.me/16RZr