Search Results - subject:"Current Account Dynamics"

Financial Regulation and the Current Account

Wieladek, Tomasz; Lanau, Sergi - International Monetary Fund (IMF) - 2012

This paper examines the relationship between financial regulation and the current account in an intertemporal model of the current account where financial regulation affects the current account through liquidity constraints. Greater liquidity constraints decrease the size and persistence of the...

Persistent link: https://www.econbiz.de/10010790288

Income Inequality and Current Account Imbalances

Ranciere, Romain; Throckmorton, Nathaniel A.; Kumhof, … - International Monetary Fund (IMF) - 2012

This paper studies the empirical and theoretical link between increases in income inequality and increases in current account deficits. Cross-sectional econometric evidence shows that higher top income shares, and also financial liberalization, which is a common policy response to increases in...

Persistent link: https://www.econbiz.de/10009654172

Precautionary Savings and Global Imbalances in World General Equilibrium

Sandri, Damiano - International Monetary Fund (IMF) - 2011

In this paper we assess the implications of precautionary savings for global imbalances by considering a world economy model composed by the US, the Euro Area, Japan, China, oil-exporting countries, and the rest of the world. These areas are assumed to differ only with respect to GDP volatility...

Persistent link: https://www.econbiz.de/10009151216

The Dynamics of the Trade Balance and the Terms of Trade in Central and Eastern European Countries

Ferreira-Lopes, Alexandra; Sequeira, Tiago Neves - Unidade de Investigação em Desenvolvimento … - 2010

In this work we assess the existence of a S-Curve pattern in ten Central and Eastern European Countries (CEEC-10) for the relation between the trade balance and the terms of trade. Empirical results support the existence of this curve for Slovenia, Czech Republic, Hungary, and also for an...

Persistent link: https://www.econbiz.de/10010561664

Current Account Imbalances in the Southern Euro Area

Jaumotte, Florence; Sodsriwiboon, Piyaporn - International Monetary Fund (IMF) - 2010

The paper examines the causes, consequences, and potential cures of the large current account deficits in the Southern Euro Area (SEA). These were mostly driven by a decline in private saving rates. But it was the European Monetary Union and the Euro, which enabled these countries to maintain...

Persistent link: https://www.econbiz.de/10008560429

Dynamic Effects of Oil Price Shocks and their Impact on the Current Account

Schubert, Stefan Franz - Volkswirtschaftliche Fakultät, … - 2009

Our objective is to study the dynamic effects of an oil price shock on economic key variables and on the current account of a small open economy. To do this, we introduce time non-separable preferences in a standard model of a small open economy, where labor supply is endogenous and imported oil...

Persistent link: https://www.econbiz.de/10005037743

Accounting for Global Dispersion of Current Accounts

Lee, Jaewoo; Chang, Yongsung; Kim, Sun-Bin - International Monetary Fund (IMF) - 2009

We undertake a quantitative analysis of the dispersion of current accounts in an open economy version of incomplete insurance model, incorporating important market frictions in trade and financial flows. Calibrated with conventional parameter values, the stochastic stationary equilibrium of the...

Persistent link: https://www.econbiz.de/10008497622

Current Accounts in a Currency Union

Decressin, Jörg; Stavrev, Emil - International Monetary Fund (IMF) - 2009

advanced economies. However, these differences in current account dynamics do not appear related to different exchange rate …

Persistent link: https://www.econbiz.de/10008528691

Productivity, preferences and UIP deviations in an open economy business cycle model

Bhattacharjee, Arnab; Chadha, Jagjit S.; Sun, Qi - 2008

We show that a flex-price two-sector open economy DSGE model can explain the poor degree of international risk sharing and exchange rate disconnect. We use a suite of model evaluation measures and examine the role of (i) traded and non-traded sectors; (ii) financial market incompleteness; (iii)...

Persistent link: https://www.econbiz.de/10010277860

Productivity, Preferences and UIP deviations in an Open Economy Business Cycle Model

Bhattacharjee, Arnab; Chadha, Jagjit S.; Sun, Qi - Centre for Dynamic Macroeconomic Analysis, University … - 2008

the puzzles. JEL Classification: E32; F32; F41. Keywords: Current account dynamics, real exchange rates, incomplete … for our work, we will want to adopt a model where current account dynamics play an important role and assess the …t of any … constraint shows the current account dynamics below. The left hand side is the changes in foreign asset holding. The right hand …

Persistent link: https://www.econbiz.de/10005807919