Erceg, Christopher J.; Guerrieri, Luca; Gust, Christopher J. - 2004
fiscal policy and trade deficits. This interest has been fuelled
by the steady increase in the U.S. trade deficit to over 5 …. Thus, methods more
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sophisticated than “eyeball econometrics” are required to isolate the effects of fiscal
policy … between fiscal policy and the trade deficit. Unfortunately, the literature
appears to offer widely divergent estimates, and …