Chinn, Menzie David (contributor); Yi, Chae-u (contributor) - 2005
reduction of the U.S. current account balance, we
quantify how much of the U.S. imbalance will be eliminated, and … balances and exchange rates. In response to a temporary shock, the current
account balance improves when the real exchange … rate depreciates. In response to a
permanent shock, however, the current account balance improves at the same time as the …