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Double deficit (economics)

Double deficit (economics) Definition

An economy is deemed to have a double deficit if it has a current account deficit and a fiscal deficit. In effect, the economy is giving claims on domestic assets to foreigners in exchange for foreign-made goods. Traditional macroeconomics predicts that persistent double deficits will lead to currency devaluation/depreciation that can be severe and sudden.


The United States in the present day is in such a state.








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