This paper examines the dynamic relationship between fiscal deficits, money supply, and price level in India during the period 1960-61 to 1999-2000. Using vector autoregression (VAR) econometric methodology, which allows variables to be treated as potentially endogenous, the study finds that...

The fiscal mess that the Canadian Federal Government got into, following large-scale increase in the fiscal deficits and debt burden resulted in corrective measures since 1984. Introduction of "Spending Control Act" in 1991 and its effective implementation upto 1996 aided in deficit reduction....

The study investigates the interaction between twin deficits in the context of India during the macroeconomic reform period from 1994: II to 2001: I. Using the vector autoregression (VAR) model, it shows that there exists one-way interaction between the two deficits. The increase in fiscal...