Current account sustainability

selected East Asian and Latin American experiences by Gian Maria Milesi-Ferretti

Publisher: National Bureau of Economic Research in Cambridge, MA

Written in English
Published: Pages: 50 Downloads: 915
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Subjects:

  • Balance of payments -- Developing countries.,
  • Capital movements -- Developing countries.,
  • Debts, External -- Developing countries.,
  • Saving and investment -- Developing countries.

Edition Notes

StatementGian Maria Milesi-Ferretti, Assaf Razin.
SeriesNBER working paper series -- working paper 5791, Working paper series (National Bureau of Economic Research) -- working paper no. 5791.
ContributionsRazin, Assaf., National Bureau of Economic Research.
The Physical Object
Pagination50, [11] p. :
Number of Pages50
ID Numbers
Open LibraryOL22411656M

This paper presents an analysis of the sustainability of current account deficits in transition economies in Central and Eastern Europe. These countries have experienced large current account imbalances in the transition to a market economy. We consider a wide range of macroeconomic factors that may indicate whether such imbalances are by: Downloadable! The possibility that a country’s external current account may adjust nonlinearly to shocks is attracting increasing attention in the empirical literature. To shed further light on this issue in the context of emerging-market economies, this paper uses Brazilian data to estimate the determinants of the current account in a smooth-transition vector-autoregressive (ST-VAR) setting. 1. Introduction. The concept of current account sustainability has long been the focus of research and policy debate in economics. Intuitively, studies on the dynamic properties of the current account imply that, if stationarity is not observed, then the country's current account is not by: sustainability of OECD current account deficits using IPS panel data unit root and cointegration tests. It should, however, be noted that IPS (, p) warn that due.

In ecology, sustainability (from sustain and ability) is the property of biological systems to remain diverse and productive indefinitely. Long-lived and healthy wetlands and forests are examples of sustainable biological systems. In more general terms, sustainability is the endurance of systems and processes.   Two years ago, sustainable bank Triodos launched its personal current account. We explore the impact and uptake so far, and how it is a chance for people to align their banking with their values When Triodos, the ethical bank, unveiled plans for its first current account two years ago, it was a bit of a departure. Current Account and External Sustainability in the Baltics, Russia, and Other Countries of the Former Soviet Union. por Donal Mr. McGettigan. Occasional Papers (Book ) Comparte tus pensamientos Completa tu reseña. Cuéntales a los lectores qué opinas al calificar y Brand: INTERNATIONAL MONETARY FUND. Working Paper Series No September Non-technical summary Large and persistent current account deficits constitute a cause for concern, particularly when sustainability issues are raised and thus the economic prospects of a country are put at risk. Against this background, identifying the determinants of the current.

Abstract. Recent episodes of currency crisis have been associated with large, growing, and eventually unsustainable current-account imbalances. The Mexican peso crisis of and the currency turmoil in a number of Asian countries (in particular Thailand, Malaysia, and the Philippines) appear to have been partly triggered by unsustainable current-account by: when concerns about the NIIP and the current account were at the forefront, and we examine the prospects for U.S. external sustainability going forward. Our key finding is that there appears to be much less ground for being concerned about U.S. external sustainability going forward now than in the mids.4 Metric for External Sustainability.   Abstract. We assess the sustainability of external imbalances for EU countries using panel stationarity tests of Current Account (CA) balance-to-GDP ratios and panel cointegration of exports and imports of goods and services, for the period Q1–: António Afonso, Florence Huart, João Tovar Jalles, Piotr Stanek. Current account or Current Account may refer to. Current account (balance of payments), a country's balance of trade, net of factor income and cash transfers Current account (banking), a checking account, held at a bank or other financial institution Current account mortgage, a type of flexible mortgage loan; Current Account (TV programme), a British current affairs television .

Current account sustainability by Gian Maria Milesi-Ferretti Download PDF EPUB FB2

The current account deficit of the United States is more than 6 percent of its gross domestic product—an all-time high. And the rest of the world, including other G7 countries such as Japan and Germany, must collectively run current account surpluses to finance this : $ Current-Account Sustainability (Princeton Studies in International Economics) [Milesi-Ferretti, Gian Maria, Razin, Assaf] on *FREE* shipping on qualifying offers.

Current-Account Sustainability (Princeton Studies in International Economics)Author: Gian Maria Milesi-Ferretti, Assaf Razin. America’s current account (CA) deficit (the trade deficit plus net income payments and net unilateral transfers) rose as a share of gross domestic product (GDP) from to a record high of about 6% of GDP in It began falling inand reached 3% of GDP in The CA deficit is financed by foreign capital by: ISBN: OCLC Number: Description: 78 pages ; 23 cm.

Contents: 1. Introduction The notion of sustainability External imbalances and intertemporal solvency Willingness to lend and willingness to pay Indicators of sustainability Country episodes Comparative analysis Conclusions.

Current Account Sustainability. This study argues that a notion of current-account sustainability that considers the willingness to pay and to lend, in addition to intertemporal solvency, provides a better framework for understanding the variety of experiences countries have had with protracted current-account imbalances.

broadly about current account sustainability, discussi ng the implications of our results and, just as importantly, suggesting avenues that are potentially more informative. Section 5 concludes. For a general reader who's interested in history and who has little idea of what sustainability is, this could be a useful introduction.

The writing is clear and with relatively little jargon. The book has endnotes and a page bibliography (praise to the publisher), though the index is inadequate: e.g.

To use equations (3) or (4) to find a sustainable current account deficit, choose a target debt to export or GDP ratio, dx or dy and then plug the expected growth and interest rates to find the share of GDP or exports that will have to be dedicated to debt service to maintain a constant debt to GDP or export ratio.

Current Account: The current account records a nation's transactions with the rest of the world – specifically its net trade in Current account sustainability book and services, its net earnings on. The current account deficit of the United States is more than 6 percent of its gross domestic product—an all-time high.

And the rest of the world, including other G7 countries such as Japan and Germany, must collectively run current account surpluses to finance this cturer: University of Chicago Press. Get this from a library. Current account sustainability and relative reliability.

[Stephanie E Curcuru; Charles P Thomas; Francis E Warnock; National Bureau of Economic Research.] -- The sustainability of the large and persistent U.S. current account deficits is one of the biggest issues currently being confronted by international macroeconomists.

There, as in the United States, the key to raising long-term sustainable growth is faster productivity growth, which will come with increased market flexibility and globalization.

This recipe would raise U.S. and global growth rates and put the U.S. trade and current account deficits on a sustainable trajectory. It is a win-win scenario. Schmitt-Groh´e, Uribe, Woodford, “International Macroeconomics” Slides for Chapter 2: CA Sustainability Savings, Investment, and the Current Account In any period, say period 1, savings, investment, and the current account are linked by the identity CA1 = S1 − I1 This expression is intuitive.

Savings in excess of what is needed. Available in: current account deficit of the United States is more than six percent of its gross domestic product—an all-time high. Due to COVID, orders may be delayed. Thank you for your : Richard H. Clarida. Current Account Sustainability in Transition Economies Nouriel Roubini, Paul Wachtel.

NBER Working Paper No. Issued in March NBER Program(s):International Finance and Macroeconomics This paper presents an analysis of the sustainability of current account deficits in transition economies in Central and Eastern Europe. Comment on "Current Account Sustainability and the Relative Reliability" Daniel Gros.

Chapter in NBER book NBER International Seminar on Macroeconomics (), Jeffrey Frankel and Christopher Pissarides, organizers (p. - ) Conference held JunePublished in April by University of Chicago PressAuthor: Daniel Gros.

The study assesses the sustainability of the current account in Malawi using the structural approach. Results reveal that for Malawi’s current account to move towards a sustainable path, particular attention should be paid to the following factors; external debt, terms of trade, openness, real exchange rate, net foreign assets and Size: KB.

Downloadable. This study investigates the current account sustainability hypothesis for Brazil, Russia, India, China and South Africa (BRICS).

For this purpose, a linear and a variety of nonlinear unit root tests have been applied to the current account to GDP ratios of the aforementioned countries. The study empirically shows that the current account sustainability for BRICS cannot be Cited by: 2.

The Unsustainable U.S. Current Account Position Revisited Maurice Obstfeld, Kenneth Rogoff. Chapter in NBER book G7 Current Account Imbalances: Sustainability and Adjustment (), Richard H.

Clarida, editor (p. - ) Conference held June. Our results show a higher likelihood of confirming sustainability when looking separately at the current account and the net foreign asset position than when looking jointly at the current and. Current account deficits are likely to persist for the foreseeable future, and their financial burden will set the general tone for the dollar.

The United States has run a current account deficit every year save one since ; this is likely to continue for the foreseeable future. The book G7 Current Account Imbalances: Sustainability and Adjustment, Edited by Richard H. Clarida is published by University of Chicago Press.

This paper is an attempt to examine the G-7 sustainability properties of current accounts of seven developed countries, using a methodology based on fractional processes.

A number of developing countries have run large and persistent current account deficits in both the late seventies/early eighties and in the early nineties, raising the issue of whether these persistent imbalances are sustainable.

This paper puts forward a notion of current account sustainability and compares the experience of three Latin American countries-Chile, Colombia Cited by: 5. Abstract: This paper presents an analysis of the sustainability of current account deficits in transition economies in Central and Eastern Europe.

These countries have experienced large current account imbalances in the transition to a market economy. Current account sustainability in transition economies.

Cambridge, MA: National Bureau of Economic Research, © (OCoLC) Material Type: Internet resource: Document Type: Book, Internet Resource: All Authors / Contributors: Nouriel Roubini; Paul Wachtel; National Bureau of.

Downloadable. We revisit the debate on the sustainability of the current account dynamics in the US. Using the concept of sustainability as the ability to meet the long run intertemporal budget constraint, we test for unit roots in the US current account for the period.

We argue that there are several reasons to believe that the current account may follow a non-linear behaviour under. Research Highlights We examine the sustainability of the current account balances of the OECD countries. Conflicting results on sustainability are shown based on traditional unit root tests.

It is very likely that the LRBC will not hold for the OECD countries. It signifies a red signal for the current account deficits of the OECD by: With the United States today absorbing roughly 70 percent of the current account surpluses of China, Japan, Germany, and of all the world's other surplus countries, the increasingly popular view that the current situation is sustainable seems unlikely.

Ma Should We Be Concerned Again About U.S. Current Account Sustainability. Shaghil Ahmed, Carol Bertaut, Jessica Liu, and Robert Vigfusson. The U.S. net international investment position (NIIP)--the difference between a country's external financial assets and liabilities--as a share of GDP (the blue dashed line in Figure 1) in recent years has resumed its earlier deteriorating trend.

Downloadable (with restrictions)! We analyze the sustainability of the US current account (CA) deficit by means of unit-root tests. First, we argue that there are several reasons to believe that the CA may follow a non-linear mean-reversion behavior under the null of stationarity.

Using a non-linear ESTAR model we can reject the null of non-stationarity favoring the sustainability hypothesis.Get this from a library! Current Account Sustainability: Selected East Asian and Latin American Experiences.

[Assaf Razin; Gian Maria Milesi-Ferrett; National Bureau of Economic Research.;] -- A number of developing countries have run large and persistent current account deficits in both the late seventies/early eighties and in the early nineties, raising the issue of whether these.Ghana. Section two discusses the concept of current account sustainability.

Section three looks at criteria for sustainability of current accounts deficits. Section four presents a detailed assessment of current account sustainability in Ghana, while section five presents suggestions to improve sustainability.

Section six concludes the paper. 2.