TY  - JOUR
AU  - Helliwell,John F.
TI  - Fiscal Policy and the External Deficit:  Siblings, but not Twins
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3313
PY  - 1991
Y2  - October 1991
UR  - http://www.nber.org/papers/w3313
L1  - http://www.nber.org/papers/w3313.pdf
N1  - Author contact info:
John F. Helliwell
Canadian Institute for Advanced Research
and Department of Economics
University of British Columbia
997-1873 East Mall
Vancouver BC V6T 1Z1
CANADA
Tel: 604/822-4953
Fax: 604/822-5915
E-Mail: john.helliwell@ubc.ca
AB  - This paper first surveys a number of partial and macroeconomic approaches to the determination of the current account, and then summarizes the evidence from multicountry economic models about the linkages between U.S. government spending and the U.S. current account during the 1 980s. The available evidence from a large number of multicountry models suggests that the U.S. fiscal policy of the first half of the 1980s was responsible for about half of the buildup in the external deficit, and that the accumulated net foreign debt is about 500 billion dollars higher than it would have been without the fiscal expansion. 
ER  -