Recommended Citation
Postprint version. Published in International Economic Review, Volume 36, Issue 3, August 1, 1995, pages 555-568.
NOTE: At the time of publication, the author Eric Fisher was not yet affiliated with Cal Poly.
Abstract
Extending the theory of generational accounts, I show that the conventional current account is not related to the real effects of a country's fiscal policy. For any international array of fiscal policies, a country can implement its own policy so that the conventional government and current account deficits are zero in every period. I argue that economists should develop a new measure of the current account. This measure is forward looking and keeps track of expected transfers between countries.
Disciplines
Economics
Copyright
1995 Economics Department of the University of Pennsylvania.
Publisher statement
Published by Blackwell Publishing. The definitive version is available at http://www.jstor.org/stable/2527360.
URL: https://digitalcommons.calpoly.edu/econ_fac/44