How does the twin deficits hypothesis fit into your world view? [1] Capital inflow is due to a trade deficit, that is to a large part financed by government de

How does the twin deficits hypothesis fit into your world view? [1] Capital inflow is due to a trade deficit, that is to a large part financed by government debt (taking in money from abroad). [1] http://en.wikipedia.org/wiki/Twin_deficits_hypothesis http://en.wikipedia.org/wiki/Twin_deficits_hypothesis