| Abstrakt: |
An approach to the effect of the budget deficit on the current account deficit has always been the focus of economists. In the macroeconomics literature, there are two approaches to investigate this relationship: the Keynesian approach and the Ricardian approach. The Keynesian approach accepts the existence of a relationship between the budget deficit and the current account deficit, while the Ricardian approach rejects this relationship. By examining the studies conducted in the field of Twin deficits, this study examines the hypothesis of Twin deficits and Triple deficits, as well as the impact of monetary policies on Triple deficits. In order to achieve the mentioned goal, the System Dynamics method and data from the period of 1999-2020 were used. The results of the study indicate the establishment of twin and triple deficit. The trend of the capital account shows that this account is always facing a deficit. However, the domestic savings gap does not seem to be fully compensated by foreign capital. The imbalance in the balance of payments aggravates the created budget deficit and can create an accelerated cycle of budget deficit. Also, in this study, the effect of monetary policy on triple deficits was also investigated. The results of the study show that using the monetary policy does not affect the formation of twin deficits and triple deficits [ABSTRACT FROM AUTHOR] |
