F4 - Macroeconomic Aspects of International Trade and Finance

• Fiscal Policy and External Balance in the G-7 Countries

  Technical Report No. 60 Stephen S. Poloz

  This paper assesses evidence, from the G-7 countries, of a link between a country's fiscal policy and its external balance, often referred to as the "twin deficits" phenomenon. It begins by reviewing the stylized facts, and then examines the theoretical case for such a link.

  Content Type(s): Staff research, Technical reports Topic(s): Balance of payments and components, Fiscal policy, International topics JEL Code(s): F, F3, F32, F4, F41, H, H6, H60

• A VAR Analysis of Economic Interdependence: Canada, the United States, and the Rest of the World

  Technical Report No. 46 John Kuszczak, John Murray

  The authors use vector autoregression (VAR) modelling techniques to examine the response of the domestic economy to foreign influences and to quantify some of the concepts and relationships relating to economic interdependence. Particular attention is given to the dynamic behaviour and interactions of the U.S. and Canadian economies over the past twenty years. Extensive empirical […]

  Content Type(s): Staff research, Technical reports Topic(s): International topics JEL Code(s): F, F1, F15, F4, F41