Choi, Horag; Mark, Nelson C.; Sul, Donggyu - In: Journal of International Economics 75 (2008) 1, pp. 30-53
We study the evolution of the U.S. current account in a two-country dynamic stochastic endowment model in which a single non-state contingent bond is the only internationally traded asset. The paper focuses on the world 'saving glut' as the primary cause of continual deterioration in the current...