Mohammadi, Mohammadi , Hassan - In: Economia Internazionale / International Economics 53 (2000) 1, pp. 85-95
The finite horizon neoclassical theory predicts that for a given path of government spending, an increase in the budget deficit will worsen the foreign trade balance. In contrast, the Ricardian view suggests that the higher budget deficit is met by an equal increase in the desired private...