Bayoumi, Tamim; Saborowski, Christian - International Monetary Fund (IMF) - 2012
undervalued exchange rates and current account surpluses. This paper argues that capital controls reconcile these views. We find … additional reserves increases the current account by some 50 cents. This is mainly offset by an opposite adjustment in the … current account of the United States—the dominant reserve currency issuer with the deepest and most liquid bond marketsâ …