We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
THE TWIN DEFICIT AND CASE OF REPUBLIC OF MACEDONIA.
- Authors
SPIRKOSKI, Blagoja; DISHLIESKA, Radica
- Abstract
In this paper we analyze the impact of twin deficit on the effectiveness of fiscal and monetary policy as a macro - economic stabilizing instrument. The paper offers an overview of the relation between twin deficit and fiscal and monetary targets in the case of the Republic of Macedonia. This paper analysis the theoretical hypothesis of twin deficit using different econometric approaches in order to to test its validity on a sample of the Macedonian data. A vector autoregressive and a vector error correction model both reject the twin deficit hypothesis at the long run in the case of the Republic of Macedonia. The vector error correction model suggests the existence of seasonally adjusted dual causality between the fiscal and current account deficits at the short run.
- Subjects
NORTH Macedonia; MONETARY policy; MACROECONOMICS; CRISIS management; TIME series analysis; ECONOMIC history
- Publication
Vizione, 2014, Vol 22, p311
- ISSN
1409-8962
- Publication type
Article