Cavallo, Michele; Tille, Cedric - Society for Economic Dynamics - SED - 2006
debt is held constant. The key finding is that as the current account moves into balance, the pace of adjustment is smooth …, current account deficits. We find that the smooth pattern of adjustment is robust to alternative scenarios, although the …A narrowing of the U.S. current account deficit through exchange rate movements is likely to entail a substantial …