Published Classic NBER Macroeconomics Annual Published May 2023Excess Savings and Twin Deficits: The Transmission of Fiscal Stimulus in Open EconomiesRishabh Aggarwal · Adrien Auclert · Matthew Rognlie · Ludwig StraubIn a multi-country heterogeneous-agent New Keynesian model, debt-financed fiscal transfers eventually raise the world interest rate and are entirely absorbed by foreign lenders, but in the short run a …