In the operation of the United States economy,the persistent current account deficits and high fiscal deficits are prominent features,collectively known as the twin deficits phenomenon.Based on the macroeconomic data of the United States from 1987 to 2019,this paper conducts an empirical study on the problem of twin deficits in the United States,and concludes that the United States fiscal deficit has a positive impact on the current account deficit through the interest rate and exchange rate transmission mechanism.Additionally,the U.S."twin deficits"problem has a negative spillover effect on China's economic growth.In the context of China-US trade restructuring,China's fiscal and taxation system reform,and high-quality development,this paper puts forward policy suggestions that China needs to promote international trade diversification,reasonably control the size of deficits,and strengthen domestic economic restructuring to safeguard its own economic interests and balance of payments.
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