Private savings deficits plus government budget deficits contribute to higher current account deficits. Some economists refer to the Ricardian equivalence theory to assert that:

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The Ricardian equivalence theory suggests that individuals will offset future tax liabilities by increasing their savings in anticipation of higher taxes. Therefore, private savings deficits and government budget deficits may not necessarily contribute to higher current account deficits if individuals save more to offset these deficits.

Private Savings Deficits Plus Government Budget Deficits Contribute to Higher