The article examines how government spending affects a country's financial health and trade balance. By studying 22 developed countries, researchers found that when a country's debt is below 90% of its GDP, increasing government spending leads to a higher trade deficit. However, in countries with very high debt levels, this relationship becomes unclear. In these highly indebted countries, increasing government spending does not necessarily result in a higher trade deficit. This suggests that in countries with very high debt, households tend to adjust their spending in response to government policies. In the euro area, the link between government spending and the trade balance weakens when debt exceeds 80% of GDP.