Relations between national public and private savings, domestic investment, and the current account are analyzed with … literature. The results from the two approaches are rather different. The simulation results indicate that private savings … largely offset public savings (and vice versa) in the short run. In contrast with findings in partial models, a smaller effect …

Relations between national public and private savings, domestic investment, and the current account are analyzed with … savings largely offset public savings (and vice versa) in the short run. In contrast with findings in partial models, a … smaller effect of aggregate savings on investment is found and government deficits tend to increase current account imbalances. …