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from herri: Krugman and Obstfelt: (Values are for year 2006 for USA; adopted from Papadimitriou) If SP = Y - T - C is negative (private savings) -3 % And SG = T - G is also negative (government savings) -2.4 % Than S = SP + SG will be negative as well (total savings) -5.4 % Current Account Balance -5.4 % Where Y is aggregate income, T is taxes, C stand for consumtion or private spending and G for government spending.
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