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Twin Deficits (Furceri & Zdzienicka)

Twin deficits in developing economies by Davide Furceri and Aleksandra Zdzienicka published by IMF (7/2018). “This paper provides new evidence on the existence and magnitude of the ‘twin deficits’ in developing economies. It finds that a one percent of GDP unanticipated increase in the government budget balance improves, on average, the current account balance by 0.8 percentage point of GDP…”

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