The Role of Stock Markets in Current Account Dynamics; Evidence From the United States

This paper tests a model of the role of stock markets in current account dynamics, developed in a companion paper. With U.S. data, the model performs better than the same model without stock markets. An insight given by the model is that the current account might help predict future stock market performance. This property receives some preliminary empirical confirmation. The results also suggest that stock markets matter to the current account dynamics.

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Year of publication:	2003-05-01
Authors:	Mercereau, Benoît
Institutions:	International Monetary Fund (IMF)
Subject:	Stock markets \| Economic models \| current account \| current account deficit \| current account dynamics \| current account deficits \| current account surplus \| current account adjustment \| current account surpluses \| domestic agents \| current accounts \| balance of payments \| reserve bank \| current account response \| current account imbalances \| debtor countries \| domestic agent \| global current account \| data preparation

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Extent:	application/pdf
Series:	IMF Working Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series IMF Working Papers Number 03/108 3 pages long
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005248178