A decade after the beginning of the Great Recession, flow external imbalances, measured by the current account (CA) have narrowed markedly. However, stock or net foreign assets (NFA) imbalances have kept increasing and have created challenges for future macroeconomic and financial stability. To...

Una década después del comienzo de la Gran Recesión, los desequilibrios externos, medidos por la cuenta corriente [current Account (CA)], se han reducido notablemente. Sin embargo, los desequilibrios externos medidos a través de variables de stock, es decir, la posición de inversión...

This paper analyzes the external solvency of a group of 23 OECD countries for the period 1970–2012. The empirical strategy adopted underlines the increasing importance of the financial channel for the external adjustment as proposed in Gourinchas and Rey (2007). We unify the traditional...