Discussion Paper

A revisit on the role of macro imbalances in the US recession of 2007-2009

Primary author

Dr. Aviral Tiwari

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The present study is an attempt to revisit the evidences of a very recent study of Paul (2010) on the role of macro imbalances in the US recession of 2007-09. Contrary to Paul (2010) who finds that great recession was due to, particularly, twin deficits, I found central cause of the problem was prolonged fiscal deficit.