Tille, Cedric; van Wincoop, Eric - In: Journal of International Economics 80 (2010) 1, pp. 89-99
In an influential series of contributions, Kraay and Ventura (2000, 2003) offer a "new rule" for the current account: in response to a temporary income shock, the change in the current account is equal to the change in saving times the ratio of net foreign assets to wealth. We analyze the impact...
