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- Title
A TWIN DEFICIT - THE ISSUE OF THE SERBIAN ECONOMY.
- Authors
Jankovic, Nenad
- Abstract
The concept of a twin deficit relates to a budget deficit and a current account deficit. In the literature, there is no unique answer to the question of what the causal relationship between these deficits is. In any case, the existence of these deficits indicates that the spending of a country is higher than its production and investments are greater than savings. The form of financing could be a potential problem, as well as the manner of the use of these funds. Crisis situations contribute to the increasing importance of the issue. In these situations, those countries where a budget deficit chronically appears and which do not have enough domestic savings to finance excessive government spending will be in a worse position. The Republic of Serbia (RS) belongs to the group of countries where a budget deficit is a chronic phenomenon financed by external sources; therefore, the paper will analyze the issue of a twin deficit.
- Subjects
SERBIA; BUDGET deficits; FINANCIAL crises; PUBLIC spending; INVESTMENTS; ECONOMIC history
- Publication
Economic Horizons / Ekonomski Horizonti, 2015, Vol 17, Issue 2, p107
- ISSN
1450-863X
- Publication type
Article
- DOI
10.5937/ekonhor1502109J