Giday, András (2020) Double Deficit in Hungary in the 1970’s and 1980’s. POLGÁRI SZEMLE: GAZDASÁGI ÉS TÁRSADALMI FOLYÓIRAT, 16 (Spec.). pp. 314-331. ISSN 1786-6553
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Abstract
In the 1970’s and 1980’s, foreign trade deficit was accompanied by a high budget deficit. To understand the process, it is essential to answer two questions. One of them is: Was there a causal relationship between the two? The other is: How did they correlate with the investment cycle? After an analysis of the issue, it is concluded that the cyclical surge in investment was the common reason behind both deficits. Pick-up in investment projects and the increase in production required substantial imports. On the other hand, project financing also increased the budget deficit. By imposing restraints on CAPEX projects, imports could be temporarily reduced and budget expenditures could decline. In foreign trade, curbing was faster, while the improvement of the budgetary position took longer.
| Item Type: | Article |
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| Uncontrolled Keywords: | fiscal policy, current account, twin deficit, socialist economy |
| Subjects: | H Social Sciences / társadalomtudományok > HC Economic History and Conditions / gazdaság története és alapelvek H Social Sciences / társadalomtudományok > HC Economic History and Conditions / gazdaság története és alapelvek > HC2 Economic policy / gazdaságpolitika |
| Depositing User: | Andrea Paár |
| Date Deposited: | 13 Apr 2021 09:55 |
| Last Modified: | 03 Apr 2023 07:12 |
| URI: | http://real.mtak.hu/id/eprint/123745 |
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