The triple deficit of Hungary

Szakolczai, György (2006) The triple deficit of Hungary. Hungarian Statistical Review, 84 (SN10). pp. 40-62. ISSN 0039-0690

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Abstract

The aim of this paper is to show that the notion and analysis of the twin deficit, the deficit of the current account and of the state budget must be extended to the notion and analysis of the triple deficit, the deficit the same two deficits and the deficit or insufficiency of domestic savings. The results support the view that these three problems, although closely intertwined, are to a certain extent independent, have autonomous causes, and must therefore dealt with separately. This result is contradictory to the common view that all problems are the consequences of state overspending and all of them can be solved by reducing the budget deficit and by cutting state expenditures. The ensuing policy recommendations are therefore, that the exports of goods and particularly services, and domestic private savings must be increased along with the reduction of budget deficit.

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