Cavallo, Michele (contributor); Tille, Cédric (contributor) - 2006
://www.frbsf.org/publications/economics/papers/2006/wp06-03bk.pdf
Could capital gains smooth a current account
rebalancing?
Michele Cavallo
Federal Reserve Bank of …, exchange rate fluctuations have a different effect on the two sides of the balance
sheet, leading to sizable capital gains and … capital gains stemming
from the depreciation of the dollar are now used to finance ongoing, albeit shrinking, current account …