Devereux, Michael B.; Sutherland, Alan - In: Journal of International Economics 80 (2010) 1, pp. 129-143
'Valuation effects' can imply that the traditional current account is an inaccurate measure of the change in the net foreign asset (NFA) position. This paper uses new developments in the analysis of portfolio choice in general equilibrium to investigate valuation effects in a two-country model....