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This paper develops a dynamic framework in which macroeconomic liberalization and stabilization measures of the type recently seen in Latin America can be studied. The model is sufficiently general to cover both polar cases of a closed capital account and free private capital mobility, so the...
Persistent link: https://www.econbiz.de/10012477560
fluctuations in savings on domestic investment and the current account? In the long run, we find that countries invest the marginal …Faced with income fluctuations, countries smooth their consumption by raising savings when income is high, and vice … versa. How much of these savings do countries invest at home and abroad? In other words, what are the effects of …
Persistent link: https://www.econbiz.de/10012469683
This paper studies sharp reductions in current account deficits and large exchange rate depreciations in low- and middle-income countries. It examines which factors help predict the occurrence of a reversal or a currency crisis, and how these events affect macroeconomic performance. It finds...
Persistent link: https://www.econbiz.de/10012472191
-account credits, and nonmonetary gold exports, which are current-account credits. The paper also adjusts historical investment data to … account for changes in inventories. The revised data are used to construct estimates of saving and investment over the period … Eichengreen, who found a significantly positive cross-sectional correlation between saving and investment even during some periods …
Persistent link: https://www.econbiz.de/10012472711
savings rate on the investment rate, as performed in the literature, are shown to be incorrect tests of the hypothesis of … between current accounts, budget deficits, investment rates and transitory output shocks. It is argued that such a model could … current account and savings equations. Empirical tests of the model for a sample of 18 OECD countries present good evidence …
Persistent link: https://www.econbiz.de/10012476287
a dynamic multicountry model of international trade, production, and investment to data from 19 countries to assess this … resolving a number of the puzzles: The dependence of domestic investment on domestic saving falls by half or disappears entirely …
Persistent link: https://www.econbiz.de/10012456897
scarcity of saving in LATAM, thereby increasing investment and growth. Yet, the data and several case studies suggest that the … savings and investments were taxed in an arbitrary and unpredictable way, the credibility of a new regime could not be assumed … saving and investment rates tends to be a time consuming process. This also suggests that greater political instability and …
Persistent link: https://www.econbiz.de/10012467540
A sticky-price model is used to motivate a structural VAR analysis of the current account and the real exchange rate for seven major industrialized countries (the US, Canada, the UK, Japan, Germany, France and Italy). The analysis is distinguished from previous work in that it adopts minimal...
Persistent link: https://www.econbiz.de/10012472307
In this paper a general equilibrium intertemporal model with optimizing consumers and producers is developed to analyze how the temporary term's of trade disturbances affect the path of real exchange rates and the current account. Changes in the internal terms of trade (due to tariff changes)...
Persistent link: https://www.econbiz.de/10012476443
In this paper a minimal general equilibrium intertemporal model, with optimizing consumers and producers, is developed to analyze the process of real exchange rate determination. The model is completely real, and considers a small open economy that produces and consumes three goods each period....
Persistent link: https://www.econbiz.de/10012476869