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Twin Deficit Theory: Comparison of Public Finance and Balance of Payments (Im)balance on the Example of the U.S.A.
Jiránek, Roman ; Mandel, Martin (advisor) ; Brůna, Karel (referee)
The thesis deals with the problems of the state budget and the current account budget balance on the example of the USA. The general problems of the state budget and the current account, Keynesian and monetarist approaches to external economic balance, twin deficit theory in Keynesian conventional and Ricardian classical approach are used as the theoretical foundation. In the practical part the thesis characterizes the USA economy development from the Second World War to nowadays. It stresses especially the American economic policy in each period, the economic growth, the rate of inflation and unemployment. The (im)balances of state budget and current account and its mutual development are discussed on this base. In the end the twin deficit theory and empirical analysis are confronted and some problems are discussed (e.g. the causality in both balances relations, time lag, external and internal factors concerning both balances etc.).

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1 Jiránek, Robin
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